Two Schedule Cs with Similar Business Expenses

[jahd2023]

If I have two different lines of income (both under self employed) that used similar resources, i.e. my laptop can I deduct business expenses twice? How does this work if my laptop was used for both? I also am concerned TurboTax has underrepresented the depreciation value on my laptop and I need support with this.

[AnnetteB6]

Yes, you can deduct a portion of shared resources on both Schedule C business expenses.  You just have to be sure that you are not deducting more than 100% in total.

For example, you mentioned that you use your laptop for both businesses.  If you assume that it is only used for business purposes with no personal use at all, then between the two businesses you cannot deduct (or depreciate) more than 100% of the cost of the laptop.  You have to decide what percentage it was used for each business, 50% for each or another breakdown between the two.  If you also used it for personal purposes, then that must be taken into account as well.

If you wish to depreciate the laptop, then it would be entered in each Schedule C as a business asset.  Enter the total cost of the laptop when you are setting up the depreciation, but be sure to include the appropriate percentage of business use.  

As you go through the depreciation, the percent of business use may be the factor that is causing you to believe that the depreciation is too low, so take a closer look at that and also consider that it is being depreciated in two separate businesses so the total depreciation is larger than you might realize.

[jahd2023]

Hello,

Thank you for your fast reply. Unfortunately it was marking the depreciation as way too low even on the first Schedule C (before I entered the other). I still need help and might need to pursue some kind of live agent upgrade, or at least call customer service first. Very stressed about a lot of things that appear wrong with this and need more support. Is there a way to work directly with you?

[CarissaM]

Please follow the instructions here to contact a live support agent. @jahd2023 

[MNSE_gal]

I didn't see any mentioning of where in Turbotax you indicate the type of deprecation system to use for the purchase and 1st year use of a laptop and where in Turbotax do you indicate it.  I believe it's best to use MACRS - GDS with 5 yr recovery, Half-Year, 200%DB method.  But where do I find this?

Would this be true for a home printer (ie. Epson ) as well as the cost of a cell phone to treat the  cost as deprecation?  The cost of the cell phone is different from the monthly data plan.

[MonikaK1]

To enter Assets for your Schedule C, in TurboTax Online, return to the Self-Employed Income and Expenses section. Then:

1. Select Edit next to your Schedule C business activity.
2. Click Add Expenses for this work
3. Select Assets
4. Click Continue
5. Click Start next to Assets
6. Follow the prompts in the Assets interview. TurboTax will select the appropriate depreciation method or expense the item if appropriate, and prepare Form 4562.

Please see this tax tips article on depreciation and Form 4562.

See IRS Publication 946 for more information about depreciation.

Please see this tax tips article on managing assets.

Enter your cell phone as an Asset, and enter the monthly fees as an Expense.