Hi Teresa, I'm not in my office right now but will check my tax return for the how it was done by my CPA the first year I started. I had start-up costs and believe they were handled a little differently. I'll also check my professional code and let you know what I use. Using an Enrolled Agent or CPA when starting out and then doing it yourself from there on is one way to have these questions answered for your particular situation, but I definitely understand wanting to save money when starting out. Disclaimer: I used to prepare tax returns for a living, but haven't in a few years, so I am not giving tax advice, but here's how my CPA does it on my particular return for my situation: For things like DNA test kits, document related fees (like BMD certificates), and books, all go on Schedule C in Part V "Other Expenses". They get typed in. For example Document Fees, Reference Materials, and Test Kits are three of the categories I use. If you have other categories not specifically listed in Schedule C Part II, then you can add them to Part V on the Schedule C. I've never heard of books being depreciated, except maybe in terms of start-up cost where those expenses get amortized. The IRA website has a section on start-up costs here: [ https://www.irs.gov/publications/p535/ch07.html ]( https://www.irs.gov/publications/p535/ch07.html ) Tax rules seem to change every year, especially when it comes to 179 deductions. I would think you would NOT want to take a 179 deduction, but rather depreciate the equipment and software so that you can take the expense against future income. Phyllis -----Original Message----- From: "Teresa Kahle" <teresa@theintrepidsleuth.com> Sent: Monday, March 6, 2017 11:36am To: "Elissa Scalise Powell, CG, CGL" <Elissa@PowellGenealogy.com> Cc: transitional-genealogists-forum@rootsweb.com Subject: Re: [TGF] Tax questions about the other side Hello Elissa and Dee, Thanks for the speedy responses. I included the amount of the client check that reimburses me for expenses as part of INCOME, so I need to deduct it somewhere. Thanks Dee for the pointer. My profits would barely buy us all lunch at Mickey D’s, but I am still thrilled about it. Can anyone take a stab at my other two questions? How do you deduct books? Computer software? (179 deductions? Depreciation?) And what professional code do you use? Teresa S. Kahle The Intrepid Sleuth www.theintrepidsleuth.com “They who are indifferent as to their origin will likely be careless of their destiny.” - Edward W. Spangler, 1896 ------------------------------- To unsubscribe from the list, please send an email to TRANSITIONAL-GENEALOGISTS-FORUM-request@rootsweb.com with the word 'unsubscribe' without the quotes in the subject and the body of the message