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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?
AI accountant’s 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.
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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.
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Melissa Pedigo, CPA
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