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Joor
Level 2

Wife and I both run businesses out of the home, can I transfer deductible?

Typically I claim the ISP deductible with my business. Is it ok to put it on her business this year vs mine? She uses the internet fulltime for her business, but we only have one ISP coming into the home that the whole household uses. Typically we take the total and only claim half(what we were told to do by an accountant). Would it raise any red flags it I put it on her business?

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1 Reply
RobertB4444
Expert Alumni

Wife and I both run businesses out of the home, can I transfer deductible?

You are supposed to divide the internet between home and business use.  That's why your accountant told you to take half - that's a safe number.

 

Then you - because you have two businesses - should be dividing the business portion by the two businesses that you have.  If your wife's business uses it more than yours then it should definitely be placed in her deductions.  But your business uses it too.  Figure out the percentage and add some to yours and more to hers.

 

@Joor 

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