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posted Jan 6, 2020 11:35:51 AM

If I changed from 1099 to W2 mid year, do I enter 6 mos. of bus. deductions or 1 yr - will the system take 6 mos of the amount entered or 100% of the amount entered?

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1 Replies
Not applicable
Jan 6, 2020 12:06:54 PM

all expenses incurred while conducting your business as an independent contractor  is deductible.  if you enter 100% of the expenses , TT will deduct 100% subject to some of them possibly being limited by the tax laws. 

 

expenses incurred in starting up your business are not deductible unless you make the IRC code sec 195 election. 

 

start-up expenses are those connected with creating or investigating the creation or purchase of a business.  these expenses are incurred before the business begins and can include

*survey of market area

*advertising the opening of the business

*travel and related costs to secure distributors, suppliers and customers 

*professional fees incurred in connection with starting the business

 

 

you self employment is reported on schedule C