How do I show that my storefront clothing biz with 5 empl, rent etc...went out of business Feb 1, 2017? It then went online only to my home office 4 the rest of 2017.

[dirtroaddivas]

So one month of 2017 I have the same employee deductions etc.   The rest of 2017 it is just me in a home office.   Is that 2  separate businesses?

[nadia0]

A higher percentage of your income will be generated from your home office for part of the year, so that higher percentage will have to be conbined with the lower percentage of use from when you had your store front and used the home office less.

For example: first 3 months of the year home office was used to generate 10% of the income for those three months, so let's say your gain for those three months was $5000, then your income generated by use of your home office was $500. If the income generated for the next 9 months was $20,000 and your home office use was 90%, then the income generated by your home office use was $18,000 so total income for the year generated by use of home office= $18,500 and total income altogether is $25,000 so % income generated by home office would be 74%