Sec 179 for asset used in 2 businesses

How was it booked into the 2 seperate companies accounting software?

Option #1 Split the asset between 2 companies.

Example. Vendor was paid total of $1,000

$300 was booked on Company #1

$700 was booked on Company #2

Then state 100% of the booked value is used for depreciation.

Option #2 Company #1 Books the total. Company #1 gets the total Section 179. then leases a percentage to company #2.

Either way, I think (correct me if I'm wrong) the combined net profit will be the same.

If he's the soleproprietor of both companies, doesn't it all come out in the wash?

Why don't you just split the cost of the asset, say, 70% of the cost to one business as a seperate asset @100% business use and 30% of the cost to the other sch c. if your 179ing the asset anyway....I am sure in audit if even questioned, could be explained as it has been in this forum..There's no magic answer to this question...On the flip side, I also would just do one schedule c and combine business anyway, it's a big red flag to split them or have multiple C's

Guess we have the same idea. I am just unsure of the purpose of having two Schedule C's. with the same owner.

The concept of filing multiple Schedule C's is one that is intriguing. My understanding is that a seperate Schedule C is to be filed for each 'undertaking'. Further an undertaking is whatever you tell others that it is. Example: If you have more than one office, you might handle them all as one undertaking, or you might handle them seperatly, each as a seperate undertaking. The problem might become more clear if say you had an over the road trucking business, and a tax practice. It seems clear to me that these would not normally be handled as a single undertaking...hence needing seperate Schedule C's. Lets assume that the Sec 179 property in this case would be office equipment. It would seem that the allocation of the equipment usage would be nessessary. This might be the time we would want to put on our 'legal hat' and biforcate the assets in an appropriate manner, and put them on seperate Schedule C's. Aren't Taxes Fun!

In that case I agree.