Two businesses, How best to handle taxes
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Two businesses, How best to handle taxes

Landing Page Forums Personal and Business Tax Matters Small Business Tax Two businesses, How best to handle taxes

This topic contains 1 reply, has 1 voice, and was last updated by Avatar of Robert Robert 7 years, 11 months ago.

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  • #5061
    Avatar of Robert
    Robert
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    We have a question from a client:
     
    I have two businesses. I am a consultant and I also sell some products. I have no expenses in my consulting. My products business makes almost nothing this year. What is the best thing to do about taxes? Can I do just one tax return?

    #5062
    Avatar of Robert
    Robert
    Member

    Yes. The company reports as a whole. The separate divisions net income are combined for income tax reporting purposes. You should hire a bookkeeper and get your accounting records brought up to date. Assuming that your businesses are unincorporated, the two business operations will be reported on your personal income tax return. You may find that a professional account can identify some expenses like travel, vehicle, home office, telephone (to name a few) which can be utilized to offset your consulting income. Barry J. Watson CA. Direct Line 604-714-1999

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