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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10432
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My Wife and I each are owners of separate microenterprise

Customer Question

My Wife and I each are owners of separate microenterprise businesses held as sole proprietorships. Must we keep all the expenses listed separately for each business or can we combine them? Also how do you handle community expenses, ie shared internet, cell phone package, rent, utilities, ect?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

...

Since the sole proprietorships are disregarded entities, you can report together.

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(might not be the best management practice to always commingle (in terms of analyzing your business, understanding where your profits are coming from, etc) ...

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But, if you file jointly, IRS considers as one household entity, and again the sole proprietorships are disregarded as well (no tax separation between the proprietorship and the person

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SO you can see that the results are exactly the same ... and what will mater in any audit will be whether your deductions are truly legitimate business deductions