Establishing self employment expenses

[rfk]

If a particular industry worker has a job with a company with W-2 status, and also works for another facility as a 1099'r (a lot less income from this), can a person establish that some of the expenses which were purchased, attribute to the 1099 income also? In the past couple of years most of the costs have been classified as employee business expenses; I want to see if some of these costs are self employed oriented, therefore can be put onto the Schedule C that is now used for this side work.

This person is a dentist who makes pretty good money, but makes an additional 15% as an independent contractor outside of his regular job.

Thanks for your input.

[ChEAr$]

The secret of success

in accounting as in taxes, is PRO Rate and Allocate.

First separate expenses into three categories, those associated with
(1) W2 (day job)
(2) self employment
(3) both.

Then establish ratio of W2 income to se income, i.e. pro rate.

(1) expenses are employee expenses on schedule a
(2) go on schedule c
(3) allocate according to percentage to schedule a and c.

[veritas]

I have a client who

is in financial services. He gets a w2 as a statuatory employee for insurance sales and a 1099 for financial products. I allocate the expenses based on a ratio of income from both sources.

[rfk]

Thank you

Thank you for your responses

[Zee]

[QUOTE=rfk;35343].

This person is a dentist who makes pretty good money, but makes an additional 15% as an independent contractor outside of his regular job.

QUOTE]

Let's see. Yesterday, the Dentist removed one of my teeth and is installing a permanent bridge to replace the missing tooth. The cost? $5000. My wife is getting a porcelin crown...$1300. I'm surprised a dentist only makes "pretty good money". Now, I understand why there are so many tootless Floridian natives. It's hard to pay those rates when you're earning $7.50 hr.

[veritas]

Dentists

What a racket. Is it an urban myth about them having a higher rate of suicide? Work maybe four days a week, new homes, cars, trophy wives. Must be tough to take.

Then they go Willie Nelson on their taxes.

[thomtax]

[QUOTE=Zee;35362]

.



QUOTE]
so many tootless Floridian natives.

Does this mean that they took their horns away from them? :-)

[Zee]

[QUOTE=thomtax;35380]

Does this mean that they took their horns away from them? :-)

We've lived in Florida two years. You wouldn't believe how often I hear the comment from visitors, "I can't believe the number of toothless people here." After visiting the Dentist and learning the cost, I realized the folks earning the low wages here just can't afford to go to the Dentist. It's too darn expensive, and most of the Dental insurance offered by smaller employer's are really just discounted plans.