Architectural Designs

Expenses eligible for income tax deduction - profolios building expense for job search and side business?

I am a graphic designer. I have a full time job, work for an advertising company, from 9-5. I am seeking for a better job opportunity, also want to get side business for graphic design. I have started to build my portfolios for these purposes. I have bought a new PC, a new camera and a new desk in late 2007 to work on my portfolios in the evenings and weekends. My intentions are (1) Job search - present the portfolios to my potential new employer, (2) Side business - present the portfolios to my potential clients to work on side business. The protfolios building will be done soon in March/April 2008. I do not have any clients yet. Questions: A) Will the PC, Camera, new desk expenses be eligible for income tax deduction? I use the PC, for 20% personal usage, the 80% is devoted to the graphic design to build my portfolios. The camera is 100% dedicated to the graphic design. B) If I could deduct the expenses, what tax forms do I use, and do I need to separate between job search and business expenses? C) What about the home office expense, I also bought a new desk in my study in 2007. Can I deduct a portion of my rent, utility, phone, supplies, that are dedicated to my study room? Thank you very much for your help!

Public Comments

1. You aren't going to see a drop in your 2007 income taxes. c) you do not have a valid home office deduction. You do no work there that you couldn't already do at the office of your current employer, you have no outside clients. b) you can't deduct start up expenses for the side job until you actually start getting business. a) the pc/camera are part of the startup business and/or so far non-job search. The job search expenses are part of the 2% section of your schedule A, but if you haven't actually been looking for another job (intentions don't count), they won't be deductible and would have to be depreciated anyway.