+ Reply to Thread
Results 1 to 6 of 6
  1. #1
    tiaj3131 is offline Junior Member
    Join Date
    Apr 2007
    Posts
    4

    Question two businesses, one home office...

    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
  2. #2
    LdiJ is offline Senior Member
    Join Date
    May 2004
    Posts
    65,572
    Quote Originally Posted by tiaj3131 View Post
    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.
  3. #3
    tiaj3131 is offline Junior Member
    Join Date
    Apr 2007
    Posts
    4

    Question

    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
  4. #4
    LdiJ is offline Senior Member
    Join Date
    May 2004
    Posts
    65,572
    Quote Originally Posted by tiaj3131 View Post
    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.
  5. #5
    tiaj3131 is offline Junior Member
    Join Date
    Apr 2007
    Posts
    4

    Question

    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!

    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!
  6. #6
    LdiJ is offline Senior Member
    Join Date
    May 2004
    Posts
    65,572
    Quote Originally Posted by tiaj3131 View Post
    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!

    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.

Similar Threads

  1. Replies: 0
    Last Post: 04-06-2008, 05:40 PM
  2. One home office, two businesses
    By jcm55 in forum Tax Law
    Replies: 1
    Last Post: 02-18-2008, 12:59 PM
  3. home office - selling home - capital gain taxes
    By angelav123 in forum Buying & Selling a Home
    Replies: 4
    Last Post: 06-29-2005, 08:00 AM
  4. Neighbors - Encroachment and home businesses
    By Michigan23 in forum Neighbors & Boundaries
    Replies: 12
    Last Post: 07-09-2004, 09:32 AM
  5. Speaking of, UC and home-based businesses?
    By ahutchGA in forum Hiring, Firing & Wrongful Termination
    Replies: 2
    Last Post: 07-24-2002, 03:57 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.