Discussion:1 or 2 schedule C's required
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| Revision as of 15:08, 20 February 2008 Dfmcpa (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 15:30, 20 February 2008 TxSrv (Talk | contribs) (Instructions say) Next diff → |
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| {{ForumNewPost|UserID=Dfmcpa|Date=20 February 2008|Text=If a taxpayer has two separate businesses, is he REQUIRED to file separate schedule C's and if the answer is yes, what are the penalties, if any.}} | {{ForumNewPost|UserID=Dfmcpa|Date=20 February 2008|Text=If a taxpayer has two separate businesses, is he REQUIRED to file separate schedule C's and if the answer is yes, what are the penalties, if any.}} | ||
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| + | {{ForumReplyPost|UserID=TxSrv|Date=20 February 2008|Text=Instructions say to do that, but no specific penalty in the statute. Indirectly you could have a 20% accuracy penalty (or preparer penalty), if combining activities caused the return to understate a tax. Like on a joint return, combining spouse's loss Sch C biz with other spouse's profitable biz. For same spouse or single t/p, there's also home office and passive loss or at-risk rules to be followed, and we can't bury a loss hobby in another "C". Etc. | ||
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| + | However, if no statutory limit or other tax is at issue, there shouldn't be anything wrong with a multi-faceted business if "under one roof," so to speak. A store-front tax preparer can also sell live bait and pump gas, no? Set up shop in a failed convenient store. 10 cents/gal off if show up early in the filing season.}} | ||
Revision as of 15:30, 20 February 2008
Discussion Forum Index --> Advanced Tax Questions --> 1 or 2 schedule C's required
Discussion Forum Index --> Tax Questions --> 1 or 2 schedule C's required
| 20 February 2008 | |
| If a taxpayer has two separate businesses, is he REQUIRED to file separate schedule C's and if the answer is yes, what are the penalties, if any. | |
| 20 February 2008 | |
| Instructions say to do that, but no specific penalty in the statute. Indirectly you could have a 20% accuracy penalty (or preparer penalty), if combining activities caused the return to understate a tax. Like on a joint return, combining spouse's loss Sch C biz with other spouse's profitable biz. For same spouse or single t/p, there's also home office and passive loss or at-risk rules to be followed, and we can't bury a loss hobby in another "C". Etc.
However, if no statutory limit or other tax is at issue, there shouldn't be anything wrong with a multi-faceted business if "under one roof," so to speak. A store-front tax preparer can also sell live bait and pump gas, no? Set up shop in a failed convenient store. 10 cents/gal off if show up early in the filing season. | |
