I’ve got a client where the husband did some 1099 work this year of approx. $13K. Subsequently, for their tax prep, he submitted his mileage and also a listing of tools and office equipment purchased ($3K).
First the mileage, if I’m reading Rev. Rul. 99-7 correctly, he can only deduct the mileage between multiple work locations (i.e. the regular commute to and from home is not deductible, whereas the other trips during the day are deductible). Of course, the recordkeeping there is sketchy.
Second, can those tools and equip be deducted via capitalizing and then depreciating? Normally, I’d say yes if this was an ongoing full fledged business. However, this was periodic 1099 work of which he may never use that equipment again. There is not separate entity, tax id, etc. This especially is my main question. So, I set up a Sch. C with the income, mileage deduction, and depreciation for this miscellaneous 1099 work which may (or may not) be an ongoing business of any sort.
Any clarification much appreciated.
Thanks,
Brian
First the mileage, if I’m reading Rev. Rul. 99-7 correctly, he can only deduct the mileage between multiple work locations (i.e. the regular commute to and from home is not deductible, whereas the other trips during the day are deductible). Of course, the recordkeeping there is sketchy.
Second, can those tools and equip be deducted via capitalizing and then depreciating? Normally, I’d say yes if this was an ongoing full fledged business. However, this was periodic 1099 work of which he may never use that equipment again. There is not separate entity, tax id, etc. This especially is my main question. So, I set up a Sch. C with the income, mileage deduction, and depreciation for this miscellaneous 1099 work which may (or may not) be an ongoing business of any sort.
Any clarification much appreciated.
Thanks,
Brian