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Level 2
posted Apr 9, 2025 10:02:28 AM

Allocating expenses across two welf-employed Schedule C's

Hi. Here's the situation: husband and wife filing jointly, both self-employed and our home offices are our only offices. For 2024, wife's Schedule C had a net profit and husband's had a net loss. But the husband paid all the joint bills like internet service, health insurance, roof repairs etc. Does that mean that the wife with the net profit cannot deduct any of the joint expenses on her Schedule C since she didn't actually pay them herself? Right now in TurboTax all the joint expenses are entered on the husband's schedule C because he paid them from his business account. Thanks for your help.

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1 Replies
Expert Alumni
Apr 9, 2025 10:10:29 AM

You can split the joint expenses between the two of you, since you both owe the expenses and are married and living in the same house. It matters less who actually paid them.