Thank you for your question
Can you please tell me what entity your LLC is? (Sole proprietor, S Corp,C Corp, Partnership?)
I see you're not online. When you come back online, and answer my question, JA will notify me, and hopefully, we will be online together and be able to chat
However, I am asking you the question re: how your LLC is set up, since some entities can have an office in the home, and some can 't
are you there
Yes, I apologize...........and I see I missed that I missed that it was Sch C
Do you mind waiting a few minutes?
I'm so sorry............this NEVER happens to me
I'm here now
and you have my undivided attention
So you have stated a separate Sch C that has not earned any money yet
and you want to know if you can deduct your cost expenses
do I have that right?
The answer to your first question re: 2 OIH......although this is not really unusual (I've done them over the years) it MAY be questioned by the IRS.............it looks like you've done your homework, and if you get a letter, you will explain it to them the way you wrote your question.........you nave 2 businesses and 2 SEPARATE rooms dedicated to your business
The IRS understands that setting up a business takes money, which is why they allow you up t0 $5000 in start up costs
Business Start-Up Costs
I sincerely XXXXX XXXXX this answered your questions, but if not, please utilize the follow up question feature so that you will not be charged for a separate question
The thing is I don't want to have to deal with the administrative nightmare that an audit is. Please define "may question" a second home office.
Second, Are you saying that a start up could accumulate 5,000. in start-up expense and unless there are revenues that's all that's allowed or are you referring to start-up expenses cap and than on-going expenses are acceptable without revenues and if so for how long
Nobody can give you a blanket statement that the IRS will not question you. HOWEVER, I CAN tell you that you are NOT the only person with2 home offices due to 2 home businesses, and I've prepared one person that has had this situation for over 20 years, and we have never even gotten a letter audit.
As for the $5000 start up expenses, I did NOT mean to imply that you could not take additional expenses in the years you pay them, whether or not you have income from the business
As long as you treat this 2nd business in the same manner you treated your first one (advertise, separate bank accounts, records of income/expenses, etc) you are absolutely free to take those expenses.
I sincerely XXXXX XXXXX I did not make these issues clear