Question on Deductions

I had filed an extension on my taxes...and now am running a bit behind...I was wondering since I'm self employed yet hardly make any money at all if it would be worth filing itemized deductions if my total rent was $475 and my total electric bill was $100...and my total phone bill was $50 a month all used to conduct business as I work from home...and I had also purchased a motor scooter for a $1000 all during 2016 ... or would it be better to file standard deductions?

Thanks in advanced for any helpful responses.

Reply to
tom.payne802
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The standard deduction depends on whether you're married, whether you have dependents, and other stuff. I'm guessing you're a single adult under 65, so your 2016 standard deduction would be $6300. But that doesn't matter, because deductions for business expenses generally go on your Schedule C, which decrease the income you transfer from Sch C to form 1040 whether or not you itemize regular deductions.

You can only deduct prorated business amounts of rent and utilities, e.g., if 1/4 of your space is used for your office, you can deduct 1/4 of the rent and utilities on Sched C. If you had bought a car, you would have a choice of taking actual expenses, or tracking the miles and deducting a straight 54c/mile. But I don't see anything in the regulations about a mileage rate for two-wheel vehicles so actual may be the only choice. See Tax Topic 510 and Publication 463 for many more details, like how much of a vehicle you are allowed to expense and how much you can depreciate.

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R's, John

Reply to
John Levine

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