Can I run two separate businesses?

Yes, it is possible to run two or more separate businesses under a single limited company. This involves the use of trading names to compartmentalise the overall company into separate units, each of which can be run as a unique business.

Can both spouses deduct home office?

It can be a room, or just part of a room, as long as the area you claim has an “identifiable space.” If you use the office for two separate business activities, the home office must qualify as your principal place of business for both activities or you cannot take the deduction for either.

Can I start a second business?

While some serial entrepreneurs will launch, build and exit the companies they start, others want to continue running their first venture while working on the second (or third, fourth, etc.). It can certainly be done, but it takes a lot of hard work and dedication to each of your businesses.

Is a home-based business considered retail?

In California, all retail sales of tangible personal property are subject to sales or use tax unless the law provides a specific exemption or exclusion. The requirements under the sales and use tax law for running a home-based business are generally the same as running a storefront business.

Can a business have more than one Home Office?

(Expenses for multiple offices used concurrently for the same business in the same home are treated as though they belong to a single office.) TurboTax supports up to 2 different home offices per Schedule C business, but only one office is allowed to use the simplified method, per IRS rules.

What should I do with my Home Office?

You use the other 50% for both businesses, splitting your time equally. As a result, you would enter 75% of your home office square footage for your first business and 25% for your second business.

How do I allocate expenses for 2 home offices?

If you maintain a separate office for each business (for example business #1 in the spare bedroom and business #2 in the basement), simply provide the requested details for each office space as you enter each business into TurboTax. We’ll use this info (square footage, etc.) to calculate the expense allocations for each office.

What are business expenses not related to Home Office?

This refers to business expenses not specifically related to the home office such as licenses, supplies, and so forth. This is used to calculate allowable expenses under the actual expense method. Was this helpful?