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Question
I have 2 businesses. One is a LLC and other one is sole proprietorship. How can I divide my write-offs and add them to each of those returns or is it just one?
- Anonymous
Answer
All of your business expenses will be deductible based upon which business incurred them. For example, bank fees for your LLC's bank account are deductible on your LLC's tax return. For co-mingled expenses for things like your cell phone (assuming you use the same phone for both businesses), should be split based upon how much you use the phone for each business. It doesn't have to be exact. If you work on both businesses equally, you'd split the expense 50/50.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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