Hone business deductions

[jerry Lenihan]

What is the name of your state? Massachusetts.

I work a full time job and do some freelance graphic design work from my apartment. I have recieved approx $8,000 for my freelance work. Are all my expenses associated with this deductable? I had to buy some equipment (@$4,500) and should probably buy some more as well.

Thanks

 

[abezon]

Yes, you can write off the business portion of any expense. Typical expenses include: equipment, postage, business miles, advertising, long distance telephone, business cell phone usage, etc. You may also have a qualified home office -- an area used exclusively & regularly for the consulting business. Exclusively means you don't use the area for ANY personal stuff. You can divide a room in half if necessary.

I recommend you hire someone to do your taxes & help you decide if it's better to write stuff off this year or depreciate & save some expenses for next year.