2 sch C's or 1

[taxgirl]

After some recent conversation on this site, I am re-evaluating some things...

I have a client that has a sch C for the service of facials etc and selling skin care products. This business has had continued losses of $1000-$4500 over a 5 year span.

She is also a hair stylist. In 2014 the owner of the salon, where my client rents for above, changed over to renting and 1099 for the stylists too.

Since both are operated out of the same location, with rent being paid to the same person, would you put the two services together as salon services?

[Kram BergGold]

Yes

To me, these two endeavors are closely related, so I see no problem with one Schedule C.

[TAX4US]

What would you do with a beautician that also sells MK from the same shop? 90% hair business 10% mk in gross sales.

[JudyL]

After some recent conversation on this site, I am re-evaluating some things...

I have a client that has a sch C for the service of facials etc and selling skin care products. This business has had continued losses of $1000-$4500 over a 5 year span.

She is also a hair stylist. In 2014 the owner of the salon, where my client rents for above, changed over to renting and 1099 for the stylists too.

Since both are operated out of the same location, with rent being paid to the same person, would you put the two services together as salon services?

I'd report it all on one schedule C because all of these activities fall under cosmetology.

[taxea]

I agree with JudyL these are similar services...one Sch C

[geekgirldany]

It is related and I would combine to one Schedule C but... why is/was she still doing the skin care with such losses? Plus how was she being paid before as a stylist? W-2?

I suppose she was paying rent for a place to do the skin care but with such losses looks like she would have stopped it.

[taxgirl]

She was previously paid via w-2. Thanks All!