Can I Get a Home Business Tax Deduction If I Have Two Businesses?

 

If you run two businesses from your home, you can take a home business tax deduction for both businesses. However, there are rules you must follow. 

You can claim the home office deduction if you have a dedicated workspace in your home for an office. This area can’t be used for personal activities. To claim it for two different businesses, the office space must qualify as the principal place of business for both. 

If both businesses meet the criteria for a home office deduction, you need to file a separate Form 8829: Expenses for Business Use of Your Home for each business. 

How to Determine Your Home Office Deduction 

To deduct home business expenses, divide the expenses between the two businesses. Base the split on how much you use your home office for each business. You have to manually divide your office space and enter it as if you had two separate offices. The total square footage submitted for each business can’t be more than the total square footage you would submit if you only had one home business. You can choose to divide your space based on time or space usage. 

You can also use the simplified method for your home office deduction. If so, you’re limited to a maximum of 300 square feet for all your businesses combined. Divide the 300 square feet among your businesses in a logical way. Don’t give more square feet to a business than you actually use for that business.

Related Resources

Celebrating Latina Entrepreneurs and Women’s History Month

During Women's History Month, we're celebrating those women who have become successful entrepreneurs. Learn more about insprining latina women like Ivette Arosemena.

3 Smart Ways to Make Money with Social Media

Are you a social media maven? You may already have the skills to make money online. Learn how to make money with social media at H&R Block.

S Corporations And Partnerships

What’s the difference between partnerships and S Corporations? Need help with your Schedule K-1? Learn more and get tax answers at H&R Block.

It’s Not Personal, It’s Business! Why You Need Separate Finances

There are many benefits to separating your personal and business finances. Learn more with the tax experts at H&R Block.