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two businesses, one home office...

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tiaj3131

Junior Member
What is the name of your state? NH

Hi, I work from home as a private contractor (service, no inventory or sales) and I also do presentations, write and do some photography (unrelated to business # 1). This is the first year I have made enough at business #2 to report. I use my computer, printers, scanners and home office for both businesses. Do I claim use as 100% for both? Do I use the same deductions (Internet, electricity, etc) for both? Won't that double everything?

hope this makes sense and thanks in advance!
tj
 


LdiJ

Senior Member
What is the name of your state? NH

Hi, I work from home as a private contractor (service, no inventory or sales) and I also do presentations, write and do some photography (unrelated to business # 1). This is the first year I have made enough at business #2 to report. I use my computer, printers, scanners and home office for both businesses. Do I claim use as 100% for both? Do I use the same deductions (Internet, electricity, etc) for both? Won't that double everything?

hope this makes sense and thanks in advance!
tj
Obviously you cannot "double dip". Therefore, if you intend to keep the two business's separate then you have to allot the expenses between the two businesses.

However, its not necessary to keep the two businesses separate unless you have a specific purpose of your own for doing so.
 

tiaj3131

Junior Member
Hi - thanks for your reply. I guess b/c they are totally unrelated I felt I had to keep them separate. For instance I use my camera for one source of income and never use it for the other. If I tried to divvy up electric, computer and peripherals use, etc. b/t the two I have no way to prove how much I used for each - and frankly wouldn't know where to begin.

So if I keep them together I can combine all my supplies and other expenses into one business and itemize them all together? I am trying really hard to get my tax due down. One year I made only $13,000 and owed almost $2000 in taxes.

thx :)
 

LdiJ

Senior Member
Hi - thanks for your reply. I guess b/c they are totally unrelated I felt I had to keep them separate. For instance I use my camera for one source of income and never use it for the other. If I tried to divvy up electric, computer and peripherals use, etc. b/t the two I have no way to prove how much I used for each - and frankly wouldn't know where to begin.

So if I keep them together I can combine all my supplies and other expenses into one business and itemize them all together? I am trying really hard to get my tax due down. One year I made only $13,000 and owed almost $2000 in taxes.

thx :)
Yes, you can handle it all as just one business.

I have one schedule C client who runs three different types of business as one business.
 

tiaj3131

Junior Member
I guess I am so afraid of red flags to the IRS as I know home offices can be - even though I make a mere $24,000/year (and 98% of it is from business #1) and can't imagine I am worth coming after. I am very careful what I claim and probably screw myself in the process! :eek:

Would it stick out if I changed the category pf my business all of a sudden? Should I just keep the old one (I'm a drafter)? I get a 1099 for that one but no records but my own for the other.

Thanks again! and now I have 2 extra days to dig up more deductions!
 

LdiJ

Senior Member
I guess I am so afraid of red flags to the IRS as I know home offices can be - even though I make a mere $24,000/year (and 98% of it is from business #1) and can't imagine I am worth coming after. I am very careful what I claim and probably screw myself in the process! :eek:

Would it stick out if I changed the category pf my business all of a sudden? Should I just keep the old one (I'm a drafter)? I get a 1099 for that one but no records but my own for the other.

Thanks again! and now I have 2 extra days to dig up more deductions!
Leave the catagory based on the main income.

If you keep proper books for your business all year long, then you don't have to "dig" for deductions at the end of the year.
 

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