1099 Tax Tips??

[savar]

I'm doing a little bit of side-work from my main job as an independent contractor tackling small IT projects for a friend's small company. I'm billing as an independent contractor and therefore I belive I will have to file a 1099 next year in addition to my 1040..

Since Im sure there are some other independent contractors in these forums who are pretty savvy, I'm soliciting tips on how to make the most of filing a 1099. For instance, I can write off certain business expenses, right? So I can write off 50% of a new computer purchase if I dedicate 50% of its use to contract jobs, right? Do write offs reduce taxes owed or just tax liability?

Any other general pointers, or good resources for learning more about this?

Thanks--

 

[Chip NoVaMac]

The only advice that I can give, is think twice about a home office deduction. Did that for a few years on my old TH, and when I sold last year - that deduction was added back in as "appreciation".