Virtual Assistant Forums | Work from Home

virtual writing · #1 (**permalink**) 02-11-2008

While enjoying the stimulating task of doing my taxes, I happened to notice that for itemized deductions, there seems to be a deduction for "clerical expense" - as described on page A-10 of the current instructions. Is this something we VAs should be pointing out to clients/potential clients?
Anyone a tax whiz out there?

Rebecka Melson · #2 (**permalink**) 02-12-2008

The line item 23 on the Sch A "other expenses" is primarily used to record investment related fees or accounting fees. In most cases if you have clerical or office expenses for a business you would be filing a Sch C or seperate business tax return on which you would take the deduction there.

The only reason I could see using this line item for clerical or office expenses is if you just started your business but haven't actually received any income yet, but have incurred some small expenses. It really is not to anyone's benefit to claim the deduction on the Sch A because the expense is limited to 2% of your Gross Income.

For instance, I pay a $40 fee for my IRA each year, I always add it to the Sch A but it's never deductible because of the 2% limit.

vainparadise · #3 (**permalink**) 02-12-2008

Quote:

Sch C or seperate business tax return

That was my initial thought but I was waiting for our Tax Guru's to chime in.

My accountant will be using a schedule C for my business startup costs. I didn't officially have any income for the business in 2007 that is why she is doing it that way.