windom[at]attglobal.net (Ilana) wrote:

- quote -

No. Your home office fails the exclusive use test for both
businesses. You have no deductible home office.

- quote -

Your home office in a separate room has no effect on the
deductibility of your husband's. He can deduct a part of
the internet access prorated by percentage use (or I think
you could lump it in with utilities and prorate it based on
square footage).

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After splitting the expenses with your husband, I'd add up
the gross income from W-2 and the gross income from 1099s
and use the proportions for the expenses.

EX: if the 1099 income is 25% of the total income you have,
use 25% of your 50% on C and the rest as employee expenses.

Nan, EA in LA

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windom[at]attglobal.net (Ilana) posted:

- quote -

Only if you don't have any personal use of the computer and
internet. If that's the fact, OK. But the "home office" is
another issue.

- quote -

Um, what? Unless your husband also has two "careers," there
should be a *split* for his expenses.

- quote -

No, you don't *have* to claim the home office.

- quote -

That's a good reason to think twice about adding the "home
office" complication -- which can make for complexity if you
ultimately sell your present home.

- quote -

Good luck, and hope this helps.

Bill

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Been a long time since I posted here! Anyway, I have a
question. I'm employed (W2) part-time and telecommute 100%
of the time (the company is 350 miles away). I also do
freelance writing and have 1099 income from that. I use the
same computer and same home office for both.

Do I treat half my expenses (basically just computer,
internet, and home office) as unreimbursed business expenses
and half as sched. C and 4562 expenses?

And to complicate things further, my husband works at his
own business from his own home office, so actually the
internet and home usage (although he has his own office with
a different percentage of space) is split in half first
before I split it in half. Um, right?

Do I have to claim business use of the house if it seems too
complicated? We actually didn't make very much money at
anything last year, so I have a feeling our taxes are going
to be pretty small regardless. I've done Sched. C before,
and even claimed business use of the home, but it was for a
single full-time business.

Please either answer to the group or to my email address:
ilana [at] windom.netrack.net. If you hit reply I will not
get it.

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