2.5 years ago, I purchased a 100 year old residence that was in bad shape. The property is now zoned commercial. 2019 the project was completed. It is now mixed use. The upstairs is a stand alone apartment that is rented out as an AirBnb. The downstairs consists of 4 separate professional offices. One of the offices is used by my business, which is a service related business. Currently, the accounting for the building (rental income and expenses) are recorded as a function of my business (separate profit centers from my business). When it comes to tax reporting:
1) Is it better to report as two separate businesses? One service and the other building rental?
2) If it's two separate businesses, would that require separate business licenses?
3) How should the building purchase and restoration be capitalized for depreciation?
