harleyman1200s

January 26, 2008

Posted by harleyman1200s

Real Estate Question ( Texas Resident ): Have bought land for an investment. Have been clearing the land for improvements.

Question: Can I right off mileage to and from property for work done and for expenses for equipment, chainsaws, gas etc...?
Thank you.

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Taxman

January 30, 2008

Posted by Taxman

0 stars ( 0 ratings )

Are you a W2 employee or an Independent Contractor (will get 1099)?
For an Independent Contractor the business related expenses are deductible on schedule C (Form 1040). For a W2 employee, the business related expenses that are more than 2% of your AGI are deductible as itemized deduction on schedule A (Form 1040).

About car mileage, you can deduct it at standard mileage rate at 48.5c per mile for 2007 or you can deduct actual expenses based on business mileage. Commuting miles are not deductible.

If you have a portion of your home only for the use of your job, then you can claim home office deduction. You can also claim proportionate for utilities.

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