Does this principle apply to a single expense shared by two DBAs of an individual sole proprietorship? For example, last year I provided IT consulting services to a client (Business A), and I also began private tutoring college students (Business B). I have a monthly cell phone bill and a monthly internet service bill, which enables me to provide service for both business ventures from my home.
Following this principle of apportionment, I divided my phone bill and internet service bill in half and allocated each half to Business A and Business B on their corresponding Schedule C forms. Specifically, I spent $300 total on the phone bill for the year but reported that as a $150 communications expense for Business A and a $150 communications expense for Business B.
Is this the correct way to apportion any expenses that are incurred once from a single source but support multiple businesses under a sole proprietorship?
