Generally speaking, yes, you can deduct parts of those bills for your
home based business even if you are on a W-2. Your non-W2 income will
go on a schedule SE (self employed) to figure out your business income
and those expenses will be dealt with over there. Business-related
expenses for a home office can either be treated as costs of 100% for
things which are exclusive use (you bought a computer that is only
used for the business, business cards, etc) or shared expenses, like
rent, gas, electricity, etc. For the shared expenses, you usually
figure out the percentage of the house that is devoted exclusively to
business use and use that percentage toward the shared costs. So if
you have a 200 sq ft room dedicated exclusively for business use and
you have a 1000 sq ft apartment, it would work out to 20% and you'd be
able to count 20% of rent as a business expense, etc.

Cheers,
Judah

On Thu, Jan 20, 2011 at 5:51 AM, Greg Morphis <[email protected]> wrote:
>
> I'm a full time w-2 and a part time 1099 - (20 hours a week with 1099).
> I use one room of my apartment for my office, have my PC in there for
> my 1099 work.
> Will I be able to deduct some of my rent, gas, electricity, internet
> from my 1099 income or since I'm also W-2 will I not be able to?
>
> 

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