Tax write offs

[7evin337557]

I had a schedule C business last year where I included write offs for my office space. However, that business will have no activity this year.   Instead we have used that office space this year for performing business for our LLC Partnership.  Is it appropriate to switch the write off that way and what is the best way to include this deduction in the LLC Partnership return?

[MarthaT]

It all depends.  If you are using that office space and the contract was under the first business that did not have any activity then it should stay there unless you sublease it to the second business.

[7evin337557]

It is actually a home office. So no contract is involved. 

[James-B]

Hi 7evin337557,

This is great question and thank you for asking!  If you stopped using your home office for one company and started using it for another, you can switch the deduction from one company to another.  The important thing is it is dedicated office space to run your company.    You can also share office space between multiple business; however you can only take the deduction once.

Here is a fantastic TurboTax article that hits on parts of the question you are asking: 

Can I claim the home office deduction for two or more businesses? (intuit.com)

When it comes to the Partnership return, you will split the revenue and expenses between partners using Form 1065.   When you complete Form 1065 a K-1 will be generated which will allow you to add your share of the revenue and deductions to your own tax return.  Here is another link for the Form 1065:

What is Form 1065, U.S. Return of Partnership Income? (intuit.com)

Thanks again for the question and have a great day!