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livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

 
11 Replies
rjs
Level 15
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

Why do you consider them two businesses? What kind of business is each one? Are they in similar lines of business, or completely different?

 

What type of organization is each business: a sole proprietorship, single-member LLC, multi-member LLC, partnership, S corp, or C corp?

 

rjs
Level 15
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

The tag below your question indicates that you are using TurboTax Live. You should address your tax questions to a TurboTax Live tax expert. You are paying for that service.

VolvoGirl
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

And it shows you are in Deluxe.  You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  Or use any of the Desktop CD/Download programs.

 

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

rjs
Level 15
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

VolvoGirl is correct, assuming that your businesses are sole proprietorships or single-member LLCs. What that means is that you cannot show a business loss in Deluxe because you can only enter the income, not expenses. You said you had losses in both businesses, so you must have had expenses. So you will not be able to complete your tax return with TurboTax Deluxe.


If you didn't keep separate records for each business, how do you know that they both had a loss?

 

Critter-3
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

If you qualify you can use one of the  9   IRS FREE FILE options  ... for 2020 your AGI must be $72K or less ...  https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

Thank you for reaching out. One was multilevel marketing and the other was errands/odd jobs. Both were kept on Square payments. I’m retired with a husband who is unable to work and trying to make ends meet. 

rjs
Level 15
Level 15

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

I would not combine them. I would report them as two separate businesses. They are very different types of business activity.


Going forward you should keep separate records for each business. Ideally you would have two separate Square accounts. I don't know if Square lets you do that.


I still recommend that you consult a TurboTax Live tax expert.

 

livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

Thank you! I tried and they aren’t available on the weekend. 

livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

Thank you! I’ll check out the link. 

livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

I think I can separate them. Just hoping I wouldn’t have to. 

livinlifetx-gmai
Returning Member

I had 2 small businesses that I’d just started. I lost $$ in both. I didn’t separate them in the records I kept. Can I combine income and expenses from them together?

Thank you!! I’ll check it out. 

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