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Old 03-06-2015, 08:56 AM
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Arrow one set of expenses, two businesses

how do I write off expenses that I used for two businesses?
I have two businesses (both construction) one with income reported on a 1099 and the other reported on a K-1. I have unreimbursed business expenses. Can I write off my home office, phone, insurance, truck mileage on my schedule c instead of itemizing, which would put that businesses income in the negative by about 2000)? If i dont apply the expenses to the schedual c my itemized deductions aren't more then standard deduction. If this makes any difference the 1099 income is $4870 and the k1 is $33550.



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Old 03-07-2015, 04:00 AM
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how do I write off expenses that I used for two businesses?
I have two businesses (both construction) one with income reported on a 1099 and the other reported on a K-1.=========>>>>>1099 incomeis reported on your sch C and line 12 of 1040while your income on SchK1 of 1065/1120s is reported on your 1040 line 17.

I have unreimbursed business expenses. Can I write off my home office, phone, insurance, truck mileage on my schedule c instead of itemizing, which would put that businesses income in the negative by about 2000)?================>>>>>>yes;on SCh C line 29. As your biz income is negative, NOL, then you do not need to pay self employment tax

If i dont apply the expenses to the schedual c my itemized deductions aren't more then standard deduction. If this makes any difference the 1099 income is $4870 and the k1 is $33550.==>>>>>>>>>>>>as you said you need to report the expenses on Sch C to reduce your AGI/taxable income and tax liability .As said you can not itemize those biz related operating expenses on Sch A of 1040 but should decut them on Sch C.so in this case, as you do not itemize the expenses on your Sch A of 1040, you just need to take your std deductions on line 40 of 1040.



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Old 03-07-2015, 09:14 AM
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If my schedule c income was recieved for only 5 weeks of work, I'm assuming I couldn't apply mileage that was accrued throughout the year in lieu of income that was reported on the K1. From what it sounds like, I can apply my home office, business phone, work truck insurance to the schedule c but if I start appling milege that was driven to do the job on income from thr schedule k I would be in murky water. Would that be correct?



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Old 03-07-2015, 06:23 PM
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Originally Posted by faithbygd View Post
If my schedule c income was recieved for only 5 weeks of work, I'm assuming I couldn't apply mileage that was accrued throughout the year in lieu of income that was reported on the K1. From what it sounds like, I can apply my home office, business phone, work truck insurance to the schedule c but if I start appling milege that was driven to do the job on income from thr schedule k I would be in murky water. Would that be correct?
it depends;aslongas written partnership agreement address unreimbursed business expenses,then, you put them on sch E, UPE code or something . if there is no, then, the partnership takes the mileage deduction.

If s-corp, you ,as a shareholder employee who uses a personal vehicle owned by the S corp for business can submit a request for reimbursement to the corporation, based on documented business miles. If the corp reimburses you based on the standard mileage rate for business under the accountable plan. In this case, The S Corp cannont deduct mileage. It will deduct depreciation on the vehicle and the operating expenses. If the s corp did not reimburse the mileage costs, then, It goes on form 2106, which carries either to SchA (miscellaneous deductions subject to 2%) of 1040. So you put your employee business expenses, including mileage, on form 2106 and carry it to the Sch A of 1040. Or If the S-Corp has a non-accountable reimbursement plan , then, it is income to you or owner, and is reported in the W-2 income. you would then take your mileage on a 2106 on your personal return.

If the vehicle were owned by you, an employee, the corp could reimburse you for the business miles driven. and the reimbursement is not reportable as taxable income to you under accountable plan, so you can not deduct it on your 1040; If the S Corp owns the vehicle,the deduction to the S Corp is based on actual operating expenses. The corp is also limited by the business-use percentage of the vehicle.The corporation can, however, deduct all of the operating expenses of the vehicle without regard to the business-use percentage, if the personal-use percentage is treated as income to the employee. The corporation's deduction for the personal-use percentage should be treated as a compensation expense on w2 then you can deduct the expense on your 1040. Under the non-accountable plan, same as above



; as said, partnership income does NOT go on a sch C unless you are in a qualified joint venture with your spouse. It goes on sch E. The income then flows to sch SE. S-corp income is paid via W-2. Soc sec taxes are paid via the W-2, not a sch C.



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