Income offset expense between two different activities?

[chris12m20]

What is the name of your state? CA

I am starting up a business to run a website, which will cost money in the beginning. It may bust before I collect any dime.

At the same time I have some expertise which I can work as independent consultant and have some incomes.

Can I use income from my role as independent consultant to offset the expense of the website to lower tax? assuming I won't be make any money in the short term from the website, I wonder if the expense from the website can offset the income of the consulting.

I guess the underlying of the question is whether the same business can do two different things: running a commerical webiste and offering unrelated consulting service?

[LdiJ]

Originally Posted by chris12m20

What is the name of your state? CA

I am starting up a business to run a website, which will cost money in the beginning. It may bust before I collect any dime.

At the same time I have some expertise which I can work as independent consultant and have some incomes.

Can I use income from my role as independent consultant to offset the expense of the website to lower tax? assuming I won't be make any money in the short term from the website, I wonder if the expense from the website can offset the income of the consulting.

I guess the underlying of the question is whether the same business can do two different things: running a commerical webiste and offering unrelated consulting service?

_______________________

You may be able to combine the two....However even if you can't the losses from one would offset the profits from another if they are both schedule C activities.

[abezon]

If the consulting is in the computer field, you can combine the activities. Otherwise you'll need 2 Schedules C. Like LdiJ said, the Schedule C amounts will net for income & self-employment tax purposes.