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Ask The Readers: Taxes for Freelancing

by Eric on January 25, 2010

Are there any closet freelancers in Narrow Bridge reader land?  If so, I have a question for you.  I got a form from my accountant last week asking about any direct costs I have associated with freelance writing I do online.  I made about $650 last year from writing projects.

The question is, how do I figure out what percent of Internet costs were associated with the writing?  How about other utilities and rent?  I did the work from home, and could not have done it anywhere else.  I needed power, Internet, and space to do the writing.  What part of all of that is a business expense?

Have any of you done this before?  How did you figure it out?  Please give your ideas in the comments.

[Also, a quick thanks goes out to Evan for including Narrow Bridge in this week's Carnival of Personal Finance.]

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