LLC Tax write off question

[Exterous]

For my wife's business I have added capacity to our home server in order to back up her data. It does store our personal data as well but I would not have added the capacity if it weren't for the business.

Would I be able to charge her a reasonable yearly fee for this capacity and maintenance and then note that as a business expense on taxes?

 

[Aharami]

isnt that just unnecessarily complicating things? Why can't you just claim part of the server as a business expense (as you would part of your house for a home office) instead of going through the hassle of yearly fees

 

[waffleironhead]

Yearly fee for llc, yearly profit for exterous.

 

[drbrock]

It would be a net zero benefit of doing it that way. Just write off the expense on the business side.

 

[stargazr]

isnt that just unnecessarily complicating things? Why can't you just claim part of the server as a business expense (as you would part of your house for a home office) instead of going through the hassle of yearly fees

This. I used to use several deductions split between the LLC and personal use, like my truck, cell phone, room in my house etc. You estimate the percentage and deduct accordingly.

 

[Exterous]

isnt that just unnecessarily complicating things? Why can't you just claim part of the server as a business expense (as you would part of your house for a home office) instead of going through the hassle of yearly fees

It would be a net zero benefit of doing it that way. Just write off the expense on the business side.

The expense would be a one time thing for hardware (well techically I think I could amortize the costs but that seems like more unnessesary complication given the cost of the drives) which doesn't necessarily capture my time going forward

 

[cabri]

Robbing Peter to pay Paul.

You can charge her, she expenses the bill.
You then declare the payment as income.

Unless you use Schedule C, you pay all applicable taxes on the income.

 

[pete6032]

Pics of wife?