I am a life insurance agent and financial advisor, and primarily run both streams of income under one business - holistic financial planning. My life insurance income is through a Statutory Employee (W-2) and my advisory business is paid through a 1099.
- Since many of my business expenses apply equally to either role, do I have full freedom to choose which Schedule C to deduct the expenses from? (To clarify, I'm not referring to expenses clearly applying to life insurance or financial advisory, but rather the ones that could apply either way).
- If I have the full freedom to select which Schedule C to deduct from, would it be more advantageous and appropriate for me to deduct these expenses from my 1099? Would this then reduce my self-employment tax obligation?
- Are there any other implications here I am not considering?
Thank you!
