<removeps-groups[at]yahoo.com> wrote in message
news:cd100e02-4ff6-4d57-9e09-f939826f9ae7[at]v39g2000yqm.googlegroups.com...
- quote -

No. The rules require that the space be used exclusively
for business purposes. If they have two (or more) businesses
allocate the expenses on a reasonable basis (gross income
perhaps) between the two or more businesses. The point
is that if you have $5,000 of home office expenses and
three Sch C's, you can't take the same $5,000 of expenses
on each of the three Sch C's but rather you must allocate
the total of $5,000 among them.

Note: exclusively does not mean primarily.

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removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:

- quote -

Correct, unless they've changed it in the past few years.

Steve

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"Dick Adams" <rdadams[at]panix.com> wrote in message
news:gnjtpp$eh$1[at]reader1.panix.com...
- quote -

Actually, assuming you meet all of the "home office" criteria, you can apply
the business use percentage of the home to the deductions that would
otherwise be Sch A deductions (i.e., mortgage interest and taxes). Apply
the business use percentage to the 1098 interest expense and take that to
Sch C (or allocate between the Sch C's as appropriate) and take the
remainder to Sch A. Same for property taxes. The advantage of this is that
it lowers income subject to self-employment taxes as well as reduces AGI for
other purposes such as 7.5% & 2% medical & misc itemized deduction haircuts.


- quote -

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On Feb 19, 6:43 am, "Stuart A. Bronstein" <spamt...[at]lexregia.comwrote:

- quote -

What if they have different businesses, and use the same space? Do
the rules say that the deduction for business B1 is only possible if
the space is used exclusively for business B1?

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Arthur Kamlet <-To[at]panix.com> wrote:
- quote -

Thank you, Art. Lowering SE taxes is an honorable endeavor. <g
Dick

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In article <gnjtpp$eh$1[at]reader1.panix.com> ,
Dick Adams <rdadams[at]panix.com> wrote:
- quote -

If this is a schedule C business, then on the office in the home (OIH)

indirect exxpenses, you would claim a prr rata share of home mortgage
interest as wekll as property taxes. The rest flow back to Schedule A.

That way you get more Sch C expenses and lower SE tax.

--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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On Feb 19, 7:28 am, rdad...[at]panix.com (Dick Adams) wrote:

- quote -

The minimum income where you have to file a Schedule SE is $400.
Actually, from Schedule SE it looks like if x*.9235<$400 then you
don't have to file, so x is $433.13.

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Sorry.

I forgot to add that you have to take depreciation on your house
for the "business space only" percentage usage. "Have to" means
if you don't the IRS may well take it for you when they compute
depreciation recapture upon sale of your house.

Dick

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<shhhhh22[at]gmail.com> wrote:

- quote -

Your mortgage interest and your property taxes are Schedule A
deductions. The principal on your mortgage is NOT subject to
deduction anywhere. The hazard insurance on your house may be
allocated by square footage. And again, as others have stated,
that square footage needs to be defined as business space only.

If you are both well above the $600 minimum for self-employment
taxes, I do not see the allocation of Schedule C expenses as
affecting your taxes due. My suggestion is to allocate by net
income after sales, but keep separate any 179 items.

Dick

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shhhhh22[at]gmail.com wrote:

- quote -

The basic rule is that you can't deduct the same thing twice.

You say you file "a schedule C." Does that mean you are in the same
business? If so, your home office expenses are probably the same with
and without your wife, though if there are two desks now you might be
able to get a slighly higher deduction for rent or depreciation.

If you are in different businesses you need separate schedule C's. In
that case you can each take your share of the deductions, say one half
each. But again, you can't deduct the same things twice.

Stu

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<shhhhh22[at]gmail.com> wrote
- quote -





As long as the space or spaces used for your and her business aren't used
for personal or non-business purposes, then the home office deduction is
allowed. You can't each take deductions for the same expense, but the total
"home office" allocation can be split between the two of you. In other
words, no double dipping.

If both of you use 20% of the house for business purposes, then you can
split that 20% between both your Schedule C businesses. I'd suggest by the
space you each use. So if you use 200sf and she uses 100sf, you'd get 2/3
of the home office expense and she'd get 1/3 of those costs.

You each file separate home office forms that tie back to each separate
Schedule C business.




--
Paul Thomas, CPA
Watkinsville, Georgia

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Hello all,

My wife and I are both Sole proprietors working from home. We file
jointly and file a schedule C and all that good stuff. This is the
first year my wife is a sole proprietor. Last year i was able to
deduct certain expenses proportionate to the square footage of my
office in relation to my house. expenses such as phone, insurance,
internet, mortgage, etc.

Now since my wife is working from home as sole proprietor as well, can
she deduct these same expenses? We file joint,


Thank you all,
Shhhhh

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >