Etsy Seller and Space question

[Misstaralyn]

Hello!

I am an Etsy seller.  I have two businesses - one I run inside my home (specifically my own office space with office equipment and supplies) and the other in a shed on my property with equipment that is also only used for this business.  Can I somehow write off the spaces that I use?  Can I depreciate the tools in my woodshop (outside business) and the business equipment (dye cutting machines, printer, computer)? 

[CatinaT1]

Yes. You have two businesses, so two different Schedule C's. You will have Business Use of Home for each business.  For the total square footage of your home, use the square footage of your entire house plus the shed space. 

For business one, you will use the square footage of the office space as the area used for business one.

For business two, you will use the square footage of the shed as the area used for business two.

You can also depreciate the tools and business equipment used for business. You will depreciate the items based on which business you use them with.

Here you can find more information about business use of home: Publication 587, Business Use of Your Home.

Here you can find more information about depreciation: Form 4562, Depreciation