Taxes 101

Self Employment & Impact on Your Income Taxes

Self-Employment Income

The limit for the section 179 deduction is $500,000 for qualified business property placed in service in 2014. The section 179 deduction is for tangible personal property such as machinery and equipment instead of depreciating them over the useful life of the items. Section 179 can only be deducted in the year of purchase.
A home office will qualify as the principal place of business if it is used exclusively and regularly to conduct administrative or management activities of a trade or business and/or store inventory. There must be no other fixed location of the business where the taxpayer can conduct these activities....