Can losses and expenses from home based business offset my spouse's corporate income?
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My husband works for a company and just started a stay at home business. This year I will have many expenses but little income. Can I write off my expenses and losses against my husband's income? Also, what if I made it an LLC with both our names?
Answer
My initial answer is no, they aren't related. You really need to sit down with a tax professional so they can ask lots of questions and determine what is best for you. You have not provided enough information for us to help.
Marc Barnes
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Answer
To the extent that your business expenses aren't "startup expenses" (a phrase with a specific meaning in tax), and are otherwise deductible, the loss on your Schedule C would offset your husband's W-2 income on a joint return. Note that "home office expenses" (another phrase with a specific meaning in tax) other than taxes and mortgage interest cannot create or increase a loss on Schedule C.
Making it a two-owner LLC just means that you need to file a separate return for the business. It would have no tax advantages for the situation you describe, and may have tax disadvantages.
I second the suggestion to get a competent tax professional involved.
