Business costs paid by spouse
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New Member

Business costs paid by spouse

If my wife runs a small business from home, and I am the one who pays the utilities from my own funds, can she deduct those costs on her taxes? 

2 Replies
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Level 9

Business costs paid by spouse

 No - she cannot deduct the expenses if they were paid form separate funds. Had the utilities been paid a from joint account, they would have been deductible. 

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Level 1

Business costs paid by spouse

I disagree.  She can deduct those expenses.  Your payment was a gift to her, which has no tax consequences.  Furthermore, if you live in a community property state, there is no such this as your vs her account. Regardless of whose name is on the bank statement, it's both of yours.

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