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Old 06-28-2012, 09:06 AM
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Default taxes with 2nd home business??? Tom Help!!

Tom, you may be able to help with this one, on the tax end???

I have done fcc for several years and want to supplement my income as bills are piling up.
Thinking about home party type business, kitchen stuff, jewelry, toys, something like that.
Anyone else do this along with their home day care?

If so, how does it work out and what are the tax issues you face with the sales business on top if day care??

Thanks for the help>
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Old 06-28-2012, 11:09 AM
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TomCopeland TomCopeland is offline
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Default 2nd business

You can certainly operate more than one business out of your home. Any of the direct expenses associated with your business are deductible. The only way the second business can deduct expenses associated with the home (property tax, mortgage interest, house insurance, house repairs, utilities, house insurance) is for that business to use one or more rooms in the home exclusively for your business.

If the second business does have an exclusive room that represents 10% of the total space of your home, then that business gets to deduct 10% of the house expenses. Calculate your time-space % for the rest of the home and deduct house expenses for your day care business. Because there is an exclusive use room for a second business, your time-space % will be lower than it would have been otherwise.
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extra income, second business, tom copeland

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