9

I think you are confused about what the IRS considers a business or not. The IRS has written on this issue regarding a person who makes investments for a living with Topic No. 429 Traders in Securities (Information for Form 1040 Filers) which classifies individuals as: Investors, Traders, and Dealers. Skipping Dealers as they have obvious customers, So an ...


7

Assuming you are in the US, based on some things you have said. If you were self-employed, then expensing books related to your business is a no-brainer and would not cause you any problems with the IRS. As an employee, before 2018 you could deduct "unreimbursed employee expenses" as long as they were normal and "necessary" subject to a few restrictions. I ...


1

You will pay income tax based on your total income ($70,000 in your example, less deductions). In addition, you will pay self-employment tax on the self-employment income. This is a separate tax, computed on Schedule SE, and added to your other taxes on form 1040. The self-employment tax rate is generally 15.3%. See schedule SE and its instructions for more ...


1

For 3 years after the filing date, there's no such thing as "your negligence". You are allowed to amend your taxes using Form 1040X for any reason, or no reason at all. So if you see a deduction you missed, by all means! File a 1040X and claim it. After 3 years, you can amend it, but they won't pay you any more refunds. You should write a completely ...


1

There's a nice guide to what the self employed can do with losses here: https://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/what-if-i-make-loss The key list (there's more detail on each option on that page) seems to be: You can use the loss in the current tax year and set it against all of your other income ...


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