Independent Contractors Get a Break
When it comes to being an independent contractor who purchases home office equipment, Uncle Sam is nicer. How so? Because most independent contractors don’t get benefits from their contracting company, so Uncle Sam thought that it would be a great idea to allow them to deduct certain expenses.
Therefore, all independent contractors can lower their taxable income by claiming self-employment tax deductions. And that’s not all: they are also eligible to claim costs such as depreciation on property, insurance, and even utilities.
However, if you’re an independent contractor and the company does provide home office equipment, you’ll find yourself under the first and second outcomes. Meaning that you’ll not be able to claim these costs as a deduction, but the company will.
