Employee expenses/equipment deduction

I'm working on my federal tax return, and, although this seems like it should be easy, it's got me stumped.

I have two sources of income: a regular payroll job, and a self-employed freelance gig. I furnish all of my computer equipment, which I use for both jobs.

On one hand, this is an uncompensated employee expense. On the other hand, it's a depreciable item in my self-employed business. How should I account for this?

Any advice will be greatly appreciated.

You should set up the self-employed freelance business as a business and report the income and expense on Schedule C of your Form 1040. You will have to allocate the use of such equipment between the activities. I suggest you download IRS Publication 334, Tax Guide for Small Businesses, to find out what you have to know. You can get the publication for free at http://www.irs.ustreas.gov/forms_pubs/index.htmlhttp://www.irs.ustreas.gov/forms_pubs/index.html

Thanks for the reply. I'll look into that publication.