I'm self employed, consistantly profitable, working out of my home / taking the home office deduction
During 2012 I started a second serice oriented business (formed an LLC
) which I also operate out of my home.
1. For the LLC I use a dedicated seperate space. A second home office deduction on the second / new Sch C is justified. How would the tax
agencies regard such a set-up ?
2. Same question for fixed assets
purchased / converted from personal
use. Again a deduction is justified but would you consider that to be a potential issue with the tax agencies.
3. The LLC did not generate any revenues in 2012. It is not expected to do so for a while.
My established home business has been profitable for the last 15 years. Even if the LLC does not generate any revenues I'll have taxable income
/ tax liability
. with that setting in mind, is there an acceptable start-up period after which this could be an issue. Also, how does that effect the preferred set-up (questions 1&2). Thank you.