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It's common for sole proprietors to run multiple businesses from the same home office. The key is to correctly allocate your expenses between them. Here's how strictly you need to separate them for tax purposes, with links to IRS and TurboTax resources: IRS Requirements for Home Office Deduction (General) To qualify for the home office deduction, you generally must meet two main requirements: Exclusive Use: You must use a specific area of your home exclusively for business. This means the space cannot be used for both business and personal purposes. For example, if you use a spare bedroom as your office, it should not also be used as a guest room or for personal hobbies. Regular Use: You must use the area for business on a regular basis. Occasional or incidental business use doesn't qualify. Principal Place of Business: Your home must be your principal place of business, or you must meet clients or customers there regularly, or use it for storage of inventory/samples if it's the only fixed location for your retail/wholesale business. You can find more details on these requirements in IRS Topic No. 509, Business Use of Home: https://www.irs.gov/taxtopics/tc509 Multiple Businesses in One Home Office When you have two unrelated sole proprietorships sharing the same office space, the IRS states that you must use the same method (simplified or actual expenses) for all qualified business uses of the same home for a particular taxable year. The important point is that you cannot deduct the office expenses multiple times. Instead, you need to allocate the expenses between the two businesses. The IRS does not provide explicit direction on how to do this, stating only that the method you choose must be "reasonable." Here are some "reasonable" methods for allocating expenses, as suggested by TurboTax and common tax practices: Based on Time: If you use your entire office for both businesses, you can allocate expenses based on the percentage of time you dedicate to each business. For example, if you spend 60% of your office time on Business A and 40% on Business B, you could allocate 60% of the home office expenses to Business A and 40% to Business B. Based on Space/Equipment: If each business requires specific equipment or dedicated areas within the office, you could allocate expenses based on the square footage used by each. For instance, if Business A's equipment takes up 75% of the office space and Business B's takes up 25%, you could use that allocation. A Combination: You could use a combination of time and space. For example, if 50% of the office is dedicated to equipment for Business A, and the remaining 50% is used for both businesses, you could further split that remaining 50% based on time. How TurboTax Handles Multiple Businesses TurboTax generally allows you to enter home office information for each Schedule C business. When you have the same physical office space for multiple businesses: You'll likely enter the home office data for each business. You'll be asked to divide the total square footage of the office space between the two businesses based on a reasonable allocation method (e.g., 50/50, 60/40, etc.). TurboTax will then calculate the appropriate deduction for each business, ensuring the total deduction doesn't exceed what would be allowed for a single business. See this TurboTax article for more guidance: If I run multiple businesses from my home office do I just deduct it once for any of the businesses? And for how to allocate expenses: I have two businesses in my home office. It is asking for the allocable home office expenses. Important Considerations: Documentation: Regardless of the method you choose, keep detailed records to support your allocation. This includes logs of time spent on each business, notes on dedicated space, and all receipts for home office expenses. Simplified Method vs. Actual Expenses: The IRS offers a simplified method ($5 per square foot, up to 300 square feet) or the regular method (calculating actual expenses). If you have multiple qualified business uses of the same home, you must use the same method for all of them. The simplified method for multiple uses is limited to a total of 300 square feet, which you must allocate among the qualified business uses. FAQs - Simplified method for home office deduction No Double Dipping: The absolute rule is that you cannot claim the same expense more than once. The allocation ensures that you're only deducting the legitimate business portion of your home office expenses across all your businesses. You don't need a physical wall separating your two sole proprietorships within the same home office, you do need to maintain clear and reasonable records of how you allocate the use and expenses of that shared space between them for tax purposes.

@JP1121  (a)  "  If I add a negative income to offset the 20K income, why isn't it $20K?  " Note that when you report your total Social Security income ( Box 5  of SSA-1099), TurboTax goes through a computation using 1/2 of your SSA income plus all your other world income to compute the taxable portion of the  SSA income --- form 1040  line 6a shows the total SSA income and the taxable portions is shown on line 6(b) of the same form.  Line 6(b) is anywhere from 0 % to 84% of  line 6(a). (b)  In order to exclude  US tax on your SSA income, you need to use the taxable portion of SSA and render it to zero,  Thus you achieve the result of zero taxation on SSA by the US. (c) Here I would also like to point out  ---             1. Per TT instructions  for entering SSA income, the screen suggests   that perhaps you not report  US SSA income if a US person resides in certain countries ---here is the screen: Social Security benefits are not taxed by the U.S. if you live in a country below. Canada Egypt Germany Ireland Israel Italy (and you are an Italian citizen) Romania United Kingdom Personally , I disagree with "not reporting" the SSA income -- no matter the situation.  This is because , till you recognize the income and  comment on why you are excluding the income from US taxes  ( and absent human intervention) the AUR system will see a mismatch  and issue  CP2000 ( and the follow-on discussions ). And then there is the perjury jurat.  Therefore I think the cleanest / correct way ( a bit more involved ) is to recognize the income and show cause as to why excluded from US taxable income and therefore no taxed by the USA.   IMHO Is there more I can do for you ?  

Ok noted. I am a single sole member small business. I have been trying to link with the right people for help for questions like these but I'm told I'm too small for a cpa and etc. Thankyou.  1. So if I decide to do content where it's 100% about my business then it's ok? 2. Is there a such thing as having an llc and then different portions...like:  Rachel's Lane LLC then have attached Rachel's Gaming, Rachel's Nails, Rachel's Cooking... like computers and subfolders so I won't have so many llc or etc.? [sorry, I'm trying to explain]

 Generally, income received from youth sports officiating on 1099s from schools can be reported under your family's newly formed single-member LLC in Arkansas. This is because officiating services are considered a legitimate business activity. You would then include your individual umpiring income and expenses as part of the LLC's income on Schedule C of your personal tax return.  Sports officiating training, certification and management is all related. One Schedule C will be needed. provided it is a single-member LLC

For taxation purposes, having it as a sole-proprietor or an LLC will make no difference. You should consult an attorney to see the benefits of being a sole-proprietor or forming an entity for your rental home.

No, the mileage from your home to your first rider are considered commuting miles and are not deductible.  Same for the mileage form your last rider to home.   You can see an example of a log in IRS Publication 463 page 39.

Yes, both vehicle insurance and depreciation can be allowed as expenses for tax purposes if your vehicle is used for both personal and business use. However, there are crucial rules and limitations you need to follow.   Vehicle Insurance as an Expense You can deduct the business portion: If you use your vehicle for both personal and business purposes, you can only deduct the percentage of your auto insurance premiums (and other vehicle expenses) that is attributable to your business use. For example, if you use your vehicle 60% for business and 40% for personal activities, you can deduct 60% of the insurance cost.     Method Matters: Actual Expense Method: If you choose to deduct your actual vehicle expenses, you will include your insurance premiums, along with gas, oil, repairs, maintenance, registration fees, and depreciation (or lease payments). You then multiply the total of these expenses by your business-use percentage (business miles / total miles).   Standard Mileage Rate Method: If you choose to use the standard mileage rate (a cents-per-mile rate set by the IRS annually), you cannot also deduct actual expenses like insurance, gas, oil, or depreciation. The standard mileage rate is designed to cover these costs. You can still deduct business-related parking fees and tolls in addition to the standard mileage rate.   Record Keeping is Key: Regardless of the method you choose, you must keep detailed and accurate records of your mileage, separating business miles from personal miles. This is essential for determining your business-use percentage. Vehicle Depreciation for Tax Purposes Yes, the vehicle can be depreciated for tax purposes if it's used for business, even if it's also used for personal use. Requirements for Depreciation: The vehicle must be owned by you. It must be used in your business or income-producing activity. It must have a determinable useful life and be expected to last more than one year.   Just like with insurance, you can only depreciate the business-use portion of the vehicle's cost. You must keep records to prove your business-use percentage. Actual expense method: The IRS allows you to depreciate the vehicle using the Modified Accelerated Cost Recovery System (MACRS), which typically classifies vehicles as five-year property. Standard Mileage Rate Method: If you use the standard mileage rate, depreciation is already built into the rate, so you cannot deduct it separately. To accurately determine your business-use percentage for both insurance and depreciation, you need to maintain a reliable mileage log.  For rideshare/delivery, session-based logging or a mileage tracking app is highly recommended. Choosing Your Method: You generally have to choose either the standard mileage rate or the actual expense method for a vehicle in the first year it's placed in service for business. If you use the standard mileage rate in the first year, you can switch to the actual expense method in later years. If you choose actual expenses in the first year, you generally cannot switch to the standard mileage rate for that vehicle in subsequent years. It's often beneficial to calculate both ways in the first year to see which yields a higher deduction. Standard Mileage vs. Actual Expenses: Getting the Biggest Tax Deduction Please refer to this link for more info. @Letty7 Thanks for the question!!  

You're asking excellent questions about vehicle deductions for mixed personal and business use, especially relevant for gig workers like Uber drivers. Here's a breakdown: Is vehicle insurance allowed as an expense if the vehicle is used for personal and business use? Yes, absolutely! If you use your vehicle for both business and personal purposes, you can deduct the business-use portion of your vehicle insurance premiums. Here's how it generally works: Determine your business-use percentage: This is crucial. You need to accurately track your mileage for both business and personal use. For example, if you drive 20,000 miles in a year, and 15,000 of those miles are for your Uber gig (picking up passengers, driving between fares, etc.), then your business-use percentage is 75% (15,000 / 20,000). Apply the percentage: You would then multiply your total annual vehicle insurance cost by that business-use percentage. So, if your annual insurance premium is $1,200 and your business use is 75%, you can deduct $900 ($1,200 x 0.75). Important Note: This deduction applies if you choose the "actual expense" method for your vehicle expenses. If you opt for the "standard mileage rate" (which is generally simpler), insurance is already included in that per-mile rate, so you cannot deduct it separately. Can the vehicle be depreciated for tax purposes? Yes, if you own the vehicle and use the "actual expense" method, you can depreciate it for tax purposes. Depreciation allows you to recover the cost of your vehicle over a period of years, reflecting its wear and tear and loss of value due to business use. Here's what to consider for depreciation: Actual Expense Method Only: Depreciation is part of the "actual expense" method. If you choose the standard mileage rate, depreciation is already factored into that rate. Business Use Requirement: To depreciate a vehicle, it must be used for business purposes at least 50% of the time. If your business use is less than 50%, you must use the slower "straight-line" depreciation method. Calculating Depreciation: You'll need the vehicle's "basis" (its purchase price plus certain fees and taxes). You'll apply your business-use percentage to this basis. The IRS has specific depreciation rules and limits (often referred to as "luxury auto" limits, even for non-luxury vehicles) based on the year the vehicle was placed in service and its gross vehicle weight rating (GVWR). You'll typically use IRS Form 4562, "Depreciation and Amortization," to calculate and report your depreciation. Vehicles are generally classified as "five-year property" for depreciation purposes, meaning the cost is recovered over six calendar years (due to a half-year convention in the first and last year). Section 179 Deduction and Bonus Depreciation: These can allow you to deduct a significant portion (or even the full cost, for heavier vehicles) of the vehicle's cost in the first year it's placed in service, provided certain conditions are met (like the 50% business use for Section 179). These are complex rules, and consulting a tax professional is highly recommended to determine eligibility and maximize these deductions. Recapture: Be aware that if your business use drops below 50% in later years after taking special depreciation, you may have to "recapture" (add back to income) some of the previously deducted depreciation. Choosing Between Standard Mileage Rate and Actual Expenses: For Uber drivers and other self-employed individuals with significant vehicle use, this is a key decision: Standard Mileage Rate: Pros: Simpler record-keeping (just track business miles). Cons: You cannot deduct individual expenses like gas, oil, repairs, maintenance, insurance, or depreciation separately. 2024 Rate: 67 cents per business mile. 2025 Rate: 70 cents per business mile. Actual Expense Method: Pros: Can result in a larger deduction if your actual vehicle expenses (including depreciation, insurance, gas, maintenance, etc.) are high. Cons: Requires meticulous record-keeping of all vehicle-related expenses (receipts for everything, detailed mileage logs for business vs. personal use). Recommendation: For gig workers like Uber drivers, accurate mileage tracking is paramount regardless of the method you choose. Many apps can help automate this. It's highly advisable to: Track all your business miles. Keep all receipts for vehicle-related expenses (gas, oil changes, repairs, insurance, car washes, tires, etc.). At tax time, calculate your deduction using both the standard mileage rate and the actual expense method to see which one yields a larger deduction.

Before I answer this, I'd like to clarify a few things about how I am reading your question. When you say that 100% of your income for the business comes in a W-9, I am assuming you mean a 1099. And when you say you filed your personal income tax return reporting the complete W-9, I again assume you mean that you included the 1099. A W-9 form contains no income; it primarily includes your name, address and Social Security or EIN. It is given to the business you are contracting with, and they use it to prepare and give you a 1099. The 1099 is what contains your income for tax purposes.   If you are a single member LLC or sole proprietor, you do not need to file a separate business tax return. There is not a quarterly business tax return either, but I believe what you are referring to are quarterly estimated tax payments, which 1099 income recipients do use to avoid underpayment penalties. You said that you have considerable withholding already from your paycheck. I suggest you run a projection for the entire year and see where you land. If you will likely owe, then make the quarterly estimated tax payments. If you'll have a refund, then I'd not pay anything. Here's a tax calculator you can use:  TaxCaster Tax Calculator. Note: the calculator is still pointed to the 2024 tax year, but you can still use it to reasonably estimate 2025. Just answer the questions as if it's 2025 instead of 2024.   I hope this extra info is helpful! Please post again if you have any other questions about this. Thanks!

Since your nail tech business is an LLC, then no you can not use the EIN number for any other business. Each business (like a multi-member LLC, corporation, or partnership) requires its own unique EIN for federal tax purposes. If you own multiple businesses, and they are structured as distinct legal entities, each needs a separate EIN. 

Some of this was helpful,  some of this was general. Can you provide an illustrated example of what entries should look like.  If I'm entering for the day, is it OK to have my home as the starting and ending locations?

Your small business can be filed with your personal tax return in most cases. If you are operating your business as a Sole Proprietor or Single-Member LLC, you may file your Income (i.e. Form1099-NEC) and expenses on a  Schedule C as part of your personal tax return.  There is no separate business return required unless your business structure is different than the two mentioned.    The IRS does not require quarterly business taxes. With the additional income you are earning through your business, you may be required to make estimated quarterly tax payments. This is to be sure you are paying the taxes due on the business income you are earning during the year.  For more information on quarterly tax payments, please see Estimated Taxes and When to Pay Estimated taxes.

No, since being a nail tech and a content creator are two separate businesses, you should not use the same EIN. You can either be a sole proprietor for the content creator or register a new LLC.  An LLC can also be an S corp for tax purposes, by filing Form 2553. Assuming you do not have any partners, report each business on a separate Schedule C (self-employment) on your Form 1040 personal tax return, whether it is a sole proprietorship or an LLC.