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Allegany County eyes 15% budget cut plan, spending freeze

By BOB CLARK BELMONT — Facing lower revenues — and possibly the loss of a large chunk of state aid — Allegany County officials may have to scale back the 2020 budget over coronavirus.

The Committee of the Whole of the Allegany County Board of Legislators forwarded a resolution asking the budget officer and deputy budget officer to work with department heads on reducing the 2020 budget by 15%, as well as putting a freeze on all nonessential purchases for the next three months.

The full board will meet April 27, at which time it is believed the resolution will be brought up for vote.

The request, by Legislator Brooke Harris, RAlfred, came after reports by county Treasurer Terri Ross on sales tax revenue and the potential for lost state assistance this year.

Revenues received for the first three months of the year beat expectations, Ross said, up about $93,000.

But that likely includes most of Christmas and through winter, she said, noting that the reduction in revenues from the closing of nonessential businesses is expected to show up for the first time in a sales tax check from the state near the end of the month.

“We’ll be seeing (checks) right along over the next three months,” she said.

However, another major source of income — aid from the state — is potentially in jeopardy.

With lost sales and income tax revenue considered, the state budget approved earlier this month allows for the governor’s office to make spending adjustments to balance state finances. State officials project revenues between $10 billion and $15 billion lower than what was projected at the beginning of the year — before the coronavirus pandemic claimed more than 10,000 lives in the state and virtually shut down commerce.

In the budget, the State Legislature gave the governor the power to cut spending across the board if there are significant budget imbalances.

Ross said that could affect the county greatly — estimating that the county has about $6.65 million in outstanding state aid and grants expected this year.

“If he is not getting the cash flows he needs, it could be anywhere between 10% to 15%,” she said, with up to $1 million in lost aid for the county in the balance.

“He’s going to check his cash flow on a monthly basis, and report to us See SPENDING FREEZE pg 2...

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Politicians, officials reflect on death of Allegany Co.'s Bill Heaney

By BOB CLARK

BELFAST — Local and state officials lamented the loss of educator, historian and politician Bill Heaney over the weekend.

Passing away after a fall at home, he was 76.

“The impact of Bill’s educational career is farreaching and will truly never be known,” said Curt Crandall, chairman of the Allegany County Board of Legislators.

“Bill Heaney, Allegany County is forever grateful for your unending interest in our community.”

Growing up in Angelica and later teaching high school English at Belfast for decades, Heaney served as the chairman of the county Republican committee for 20 years and worked on staff at virtually every level of government.

Former Gov. George Pataki, who tapped Heaney in 2001 to be his representative in the region for six years, lamented the loss.

“So sorry to hear. Bill was a great guy,” Pataki said in a statement. “And a tremendous help to me.

Please extend my condolences to everyone.”

Former state Sen. Catharine Young also spoke highly of Heaney.

“Bill was a dear friend and mentor to me for more than 22 years,” she said. “He had that endearing Irish charm and quick wit, and knew how to bring people together to get important things accomplished. That’s

File photo Bill Heaney (left) listens to Ron Taylor, executive director of the Allegany County Historical Society, during the opening of the 2018 Allegany County History Awareness Week at the David A. Howe Public Library in Wellsville.

why political luminaries such as Congressman Amo Houghton, Gov. George Pataki, Senators Jess Present and Pat McGee, and former Assemblymen John Hasper and Dick Wesley worked so closely with him.

“In 2002, when Gov. Pataki was running for re-election, he wanted to make sure he spent time in rural areas, especially traveling the Southern Tier counties,” Young said. “Bill helped put together a whistle stop tour on an antique train that traveled from Chautauqua County to Steuben.

People were very excited, parked at train crossings and running across fields to wave and cheer.

Large crowds greeted

us at stops in Olean and Belmont. It was a classic Bill Heaney-organized event — history, creativity and politics rolled up into one.”

Young said the two met for the first time in 1999.

“The first time I met him was when he was Allegany County Republican Chairman and I was running for the state Assembly,” she said. “Bill immediately put together a campaign team, helping me win the election even though we only had 11 weeks to put it together, and we have been personal friends and colleagues ever since.”

Later on, Young said, Heaney was he was an “invaluable member of my staff, and did a phe-

nomenal job, representing me at many events when I was in Albany.”

She said Heaney was a master of local history and an ardent advocate for Allegany County.

“He loved his family and friends, and his passing is a great loss for our entire region,” she said.

Crandall noted that Heaney served on the Belfast Town Board, later becoming the county’s Republican election commissioner. Two years after that he became the Allegany County Republican chairman.

He later moved on to federal politics, working for then-Rep. Amo Houghton as the congresSee BILL HeANEY pg 2...

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By BOB CLARK

Wellsville Balloon Rally officials deflated over coronavirus cancellation

WELLSVILLE — The keystone of summer events in Allegany County is calling in sick this year.

Late April 16, the Great Wellsville Balloon Rally committee announced it will not hold an event this summer — the first time in 45 years.

Brad Thompson, chairman of the committee, announced the decision to cancel the July 1719 event, which draws dozens of balloonists and thousands of spectators to the village.

“After much discussion, and weighing the pros and the cons, we have decided as a committee, to cancel this year’s rally,” Thompson said. “This is a heartbreaking decision for the committee to make, and none of us takes this decision lightly.”

This will be the third year since the festival’s founding that balloons will not launch — the previous two, the latest in 2018, were due to weather-

File photo Balloons take off during the Great Wellsville Balloon Rally.

related launch cancellations.

Uncertainty over how long the coronavirus pandemic will last in the region, officials noted that many events scheduled for later in the year have already been tabled.

“Having a large gathering, with people attending from all over Western NY and the Northeast, would be irresponsible in light of the current

health crisis,” Thompson said.

“Many events around Western New York and many larger balloon rallies have canceled their events well into August.”

In addition, the largest fundraisers for the festival are being hit hard by the virus.

“The committee feels that we cannot ask our local sponsors (local businesses that sponsor the balloons) for their support

BILL HEANEY

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the founding of the Allegany County History Awareness Week, which has brought around a thousand school children to the David A. Howe Library in Wellsville to learn about the events that shaped the county.

The centerpieces of the first exhibition were $12,000 replicas of pistols used in the famous duel between Alexander Hamilton and Vice President Aaron Burr that resulted in the death of Hamilton.

The pistols used in the duel were owned by John Barker Church, who

You’re in luck!

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Continued from front page...

was Hamilton’s brotherin-law, who passed the pistols on to his son, Philip Church, one of the founding fathers of Allegany County. Working with Amo Houghton, J.P. Morgan Chase sent the handcrafted replicas — the originals are stored in a vault in Manhattan — for the exhibition.

Heaney is survived by his wife, Eva, three sons and seven grandchildren.

In lieu of flowers, contributions may be made to the Belfast Lion’s Club.

Online condolences may be made at treusdellfuneralhome.com.

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quarterly to let us know.”

There is a possibility that, if aid is cut, it could be restored before the end of the state’s fiscal year, which ends next March 31.

A review in February will determine “either making us whole, or they don’t have the cash to pay us,” she said. “We won’t know those final numbers until next February.”

Harris made the motion for the emergency plan, noting he hopes it does not become necessary.

“It is the responsibility of the board to get out in front of this thing and reduce any negative impacts,” he said, with department heads being in control over what is deemed unnecessary spending.

Legislator Dwight Fanton, R-Willing, said that the county has set aside a large fund balance, which could help weather the storm while still providing services.

According to the 2020 budget report, the county has an estimated $25.89 million in unreserved fund balance,

minus $4.75 million to balance the 2020 budget.

“I’m all for fiscal prudence, but I don’t want us to get panicked about what we’re doing,” Fanton said.

Board Chairman Curt Crandall, R-Belfast, noted that now is the time to get a plan in place that may be necessary — which is what Harris called for — and not just make a wanton slash of the budget.

“That three-month period is going to give us time to get a handle on this,” Crandall said.

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thoughts to next year’s rally.

“Until then, wishing everyone calm winds and soft landings, be well, be safe, and we will see you in 2021.”

ON APRIL 17, organizers of the Cuba Dairy Days, originally set for June, also announced their event would be canceled this summer.

“The Cuba Chamber of Commerce regrets to announce that this year’s Dairy Days activities will be cancelled due to the social distancing that is called for due to the coronavirus,” the Chamber posted on its Facebook page. “Some restrictions may be lifted by then, but this event would happen very early in the timeline of opening up businesses and communities.

“Our wish is to keep everyone in our wonderful community and our visitors safe,” they added. “We will be back with gusto next year! Stay safe and healthy everyone!”

SPENDING FREEZE

Continued from front page...

sional regional director and a political consultant.

Houghton passed away on March 4.

Heaney served as a delegate at two Republican National Conventions, casting ballots for George H.W. Bush in 1992 and Bob Dole in 1996.

After working for Pataki, Heaney served part-time on the staff of Assemblyman Joe Giglio, R-Gowanda, and then full-time for Young. He retired in 2017.

In recent years, Heaney spent much time focusing on the area’s history.

He was instrumental in

or donations this year, as many of these businesses are either closed or their business is significantly diminished,” he said.

The other major source of income — T-shirt and other merchandise sales — are also crippled, as the printer is a non-essential business and is closed. The shirts have a six-week lead time, Thompson said, with the shirts typically going on sale in June.

“Even if our vendor was able to provide them in time, we would still be taking a huge risk that the large gathering ban will be lifted in time for the rally,” he added.

Rescheduling is off the table, as well.

“Logistically it really is not possible to reschedule the rally, as most balloonists have other rallies that they attend after ours, but, at this point, no one knows what is going to be the new normal moving forward through the summer and fall,” he said. “So, we will turn our

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APRIL 24 - 30, 2020

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Manufacturer moving into Alfred State nursing faculty space in Wellsville serve in hospitals, care facilities

WELLSVILLE — More former factory space in the area is being filled as a bearing manufacturer based in Illinois has located a new division in the former Lufkin-RMT plant at 4181 Bolivar Road.

Babbitting Service Inc. of South Elgin, Ill., has established BSI East, its second manufacturing location, in the 10,000-squarefoot engineering and manufacturing location. Workers at the site will design bearings based on existing specifications, while the division is also equipped to manufacture specific bearing types such as ball and

socket style assemblies.

The company lists open jobs for its Wellsville site, including machinist, computer numerical control machinist and support. Craig Clark, executive director of the Allegany County Industrial Development Agency, told the Evening Tribune of Hornell that BSI East could have eight to 12 employees at the site.

In early March, Allegany County economic development officials announced that PM Research Inc. had a lease agreement with the Steam & Air Solutions business of Curtiss-Wright to utilize

office space in the former GE/Lufkin site on Tarantine Boulevard.

The lease will allow 32 Curtiss-Wright employees to continue to work in Wellsville.

The county IDA owns the former GE/Lufkin facility.

In 2018, PM Research entered into a lease-purchase agreement, which included a payment in lieu of taxes agreement, with the IDA to acquire the facility in order to expand manufacturing space for the company’s Precision Armament division.

Jones Memorial receives donations of soup mugs, headbands

WELLSVILLE — When Kate McKinley Murphy posted on Facebook that she was organizing a program called "Adopt a Medical First Responder," her goal was to have sponsors for 100 Tupperware soup mugs to be donated to local nurses, doctors, police, firefighters and ambulance squads.

Instead, 288 mugs were sponsored and will be donated to first responders in the community, including over 50 to Jones Memorial Hospital.

A Tupperware dealer, Murphy was looking for a way to bring a spot of sunshine to local folks working on the front lines during the current Covid-19 pandemic by filling a Tupperware soup mug filled with teabags, oatmeal and a snack for local first responders.

Responses to her post came from all over the country.

“I got responses from people who used to live in Wellsville and wanted to support our first responders as well as people who live here now,” said Murphy.

The $6 sponsorship donation covered the cost of the mugs, but Kate covered the shipping and the

Photo provided Jessica Lippa, co-chair of the Alfred State College Nursing Department, also works at St. James Hospital as a family nurse practitioner.

items to put in the mugs.

She and her family spent Easter Sunday putting the mugs together for the first group — Jones Memorial Hospital.

“What a wonderful idea and a kind and thoughtful donation,” said Eva Benedict, CEO at Jones. The mugs have a tag with the name of the sponsor.

To spread the gift among all JMH staff, the hospital had a random drawing so all staff members had a chance to win. The winners were able to choose between one of the soup

mugs and the beautiful stretch headbands donated

by The Savvy Coconut, thanks to Leah Scoville.

The Savvy Coconut is currently donating two headbands for every headband purchased. The buyer, in this case Leah Scoville, chose Jones Memorial to receive the free headbands.

Everyone at Jones extends a thank you to Murphy and everyone who supported her effort and to Scoville for choosing Jones Memorial Hospital.

ALFRED — As the need for more medical workers in New York state grows due to the coronavirus, Alfred State College Nursing Department faculty members are stepping up to answer the call of duty.

While some faculty members are working at these locations for the first time, others are taking more shifts and working longer hours at facilities where they have already been providing care in addition to their teaching responsibilities.

To help the nursing faculty, which includes members who work in hospitals and care facilities in both Cattaraugus and Allegany counties, Alfred State has donated medical supplies, including personal protective equipment.

“Our faculty are nurses first and foremost,” says Jennifer Ross, a lecturer at ASC who is primarily working at Jones Memorial Hospital in Wellsville but is also working per diem at St. James Hospital in Hornell.

“We all took the Florence Nightingale Pledge to ‘dedicate myself to devoted service to human welfare,’ and each graduating nursing class continues to take this pledge,” Ross says.

“What better way to teach students than to lead by example; to answer the call to serve in a time of crisis.”

Jessica Lippa, the department co-chair and associate professor, says that even though balancing online teaching, family life and working at healthcare

Photo provided Jessica Lippa, co-chair of the Alfred State College Nursing Department, also works at St. James Hospital as a family nurse practitioner.

facilities has been a challenge, faculty have made it work.

“I am honored to work with this group of faculty members who have stepped up to support our communities in their time of need,” says Lippa, a family nurse practitioner at St. James.

She adds that Alfred State is looking to increase enrollment in response to the current shortage of nurses, while the college will be seeking current nurses who are interested in applying to be clinical faculty.

Other Alfred State Nursing faculty from the area working on the front lines: • Taylor Craft, adjunct instructor, is working as a registered nurse on the medical-surgical floor at Jones.

• Ruthanne Ashworth, as-

sistant professor, is a nurse practitioner at Jones.

• Jean Gonska, a adjunct instructor, is working in the emergency department at Olean General Hospital.

• Kimberly Howard, assistant professor, works in long-term care for The Pines Health Care and Rehabilitation Center of Cattaraugus County.

• KathyAnn Sager, associate professor and department co-chair, is working as an assistant director of nursing at Corning Guthrie Hospital.

• Marilyn Oggeri, assistant professor, is serving as a registered nurse in the emergency department at Corning Guthrie Hospital.

• Adjunct instructor Hannah Tiffany is working at Arnot Ogden Medical Center in Elmira.

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Borrello: Rural counties should have leeway to reopen economies

By JIM ECKSTROM

ALBANY — State Sen. George Borrello and a fellow Chautauqua County lawmaker are suggesting a plan for a region-based, phased-in reopening of New York’s economy.

The strategy put forward April 16 by Borrello and Assemblyman Andy Goodell of Jamestown hinges on application of a regionally based assessment model that would determine risk level based on factors such as population density, infection rate and healthcare capacity.

The strategy would also incorporate risk analysis by industry.

Borrello, a Republican, likened the COVID-19 pandemic a “horror film” scenario that invaded almost overnight, changing life as we know it.

“However, an economic crisis has been unfolding alongside our public health emergency,” he

Sen. George Borrello

said. “The shuttering of our businesses has resulted in staggering job losses.”

More than 1 million residents filed for unemployment over the past five weeks, four times the total number of jobs lost during the Great Recession of 2008.

“While New York is one state, we cannot ignore the reality that there is a huge gap between infection rates in New York City and its surrounding counties and rural areas of upstate,” Borrello said.

Borrello and Goodell

have submitted their plan to Michael Schmidt, state commissioner of tax and finance, who will be part of the Cuomo administration’s team working on restarting the economy.

Their proposal was released the same day that Gov. Andrew Cuomo ordered the continued shutdown of non-essential businesses and schools until May 15.

Borrello and Goodell believe rural Western New York counties in particular could begin to reopen their economies with less risk than more densely-populated downstate.

The geographical template for the plan would be the state’s 10 existing Regional Economic Development Council zones.

Each would be evaluated based on risk-assessment factors such as infection level, hospitalizations and demographic and trend data, such as the increase or decrease in number of active coronavirus cases.

Risk analysis by business sector would also be conducted, based on the four-level model developed by OSHA, with corresponding guidelines for protecting workers safety.

Borrello points out in Chautauqua County there are four active cases and a substantial drop in the number of people in precautionary quarantine.

“That is just one example, but it is illustrative of the experience of many rural areas,” Borrello said. “Under the plan we are advancing, economies in regions like this could be safely restarted by following safety protocols, putting people back to work and saving many small businesses from having to close their doors forever.”

Cattaraugus County reported 30 people with COVID-19 as of earlier this week, while Allegany County had 31.

Giglio: NY should loosen regs, direct more aid to farmers

By JIM ECKSTROM

BL AC K T O P

ALBANY — Assembly Republicans want the governor and majority lawmakers to act quickly to help farmers manage the economic downturn caused by the COVID-19 outbreak.

Measures recommended in a letter sent Wednesday to Gov. Andrew Cuomo and his Department of Agriculture and Markets commissioner, Richard Ball, and the Democratic majority leaders in the Senate and Assembly include loosening regulatory expenses and requirements on farmers.

The GOP conference also wants to broaden eligibility standards to ensure farmers receive federal stimulus money and expand markets to create more opportunities for farms to move their products.

Assemblyman Joseph Giglio, R-Gowanda, said the recommendations are meant to help the state’s farmers weather the current economic crisis caused

by COVID-19, but also to help farm markets

recover faster when the economy begins to get back on track.

“Remember, this is the No. 1 industry in New York state,” Giglio said of agriculture. “We want to help our farmers now (during the pandemic) but we also want to give them the tools they need, when the economy starts up again, to come out roaring.”

Even before the COVID-19 outbreak and associated financial crisis, New York’s agriculture industry has struggling in recent years. According to the U.S. Department of Agriculture, Census data showed that New York state lost 2,100 farms between 2012-17, including a 20% drop in dairy farms during that time.

Meanwhile, measures to contain the spread of COVID-19 have caused severe market disruptions and dramatic shifts in the supply chain for the state’s 33,400 farms.

The Times Herald reported last week that some Cattaraugus County dairy farmers had to dump milk re-

cently because of those disruptions.

Giglio believes the governor and State Legislature must look again at last year’s Farm Labor Act, which included rules for paying seasonal farm workers overtime.

The Assembly Minority’s recommendations include: • Suspend for one year DMV registration requirements for agricultural vehicles and farm trucks.

• Suspend the highway-use tax, special hauling permit fees and collection of state tolls for vehicles used to transport agricultural products, including milk.

• Suspend, for one year, the 60-hour overtime threshold for farm laborers enacted as part of the 2019 Farm Labor bill.

• Suspend, during the state of emergency period, the 24-hour agricultural rest requirement.

• Extend the Milk Producers Security Fund to help producers who are unable to sell because of COVID-19.

• Use additional federal stimulus money for direct cash infusions for Cornell Cooperative Extensions to assist in the provision of emergency services.

• Use federal stimulus funding to invest in rural broadband infrastructure to assist in the provision of services to farms/rural areas during uncertain social and economic times.

• Provide vouchers for food banks to purchase local dairy and agricultural products.

• Stipulate “green nurseries” as essential businesses for the remainder of the COVID-19 crisis so that these businesses can re-open while following social-distancing guidelines.

Giglio said it’s hard for area nursery owners to watch the big box stores selling flowers and non-food garden items, while “non-essential” nursery businesses are shut down.

“We feel there is a way for these nurseries to maintain social distancing and still serve their customers,” Giglio said.

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7

TAXES & LIFE PLANNING MONE

Y

MANAGEME

NT

Claiming a Newborn on Your Taxes: What You Need to Know

A new baby in your family can mean lots of life changes – including your tax life. Claiming a newborn on your taxes and taking advantage of tax benefits, such as the child tax credit, is possible even if the baby was born late in the year.

In fact, you can claim your newborn on taxes even if they were born the very last day of the year.

The IRS residency test says you qualify to claim a newborn on your taxes if

your home was the child’s home for more than half the time they were alive. This is

true if the child lived with you more than half the year except for any required hos-

pital stay after birth.

Can I Claim My Newborn on Taxes Without a Social Security Number?

You can claim your newborn on your taxes, but you must provide your baby’s Social Security number (SSN) to complete the return. If you claim your newborn but you don’t include their SSN on the return, the tax benefits for your child will be disallowed.

Although most newborns get an SSN soon after they

are born, sometimes you might not get your child’s SSN before you file your tax return if they were born near the end of the year. If you haven’t received your child’s SSN by the normal tax due date, you should file an extension using Form 4868. That will give you extra time to get the SSN.

“Claiming Newborn on Taxes: H&R Block.” Tax Information Center, 5 June 2019, www.hrblock. com/tax-center/filing/dependents/ claiming-newborns-on-taxes/.

Where to start for a much-needed tax clean up

As people around the world are purging clothes, refolding everything in the dresser drawers, and decluttering areas of their homes not touched in years, many are ignoring a key area that can help especially this time of year.

Organizing tax information can make things so much easier in the long run.

From shoeboxes to paper bags, taxpayers have interesting ways of keeping all the documents needed for that visit to see a tax professional or prepare their taxes online. But it’s not just about keeping the right information, but more importantly, keeping it organized in a way that will make things less stressful come tax season.

What to keep According to experts at The Tax Institute at H&R Block, it is important for taxpayers to keep the following items: · Anything that reports income, including W-2s, 1099-K or 1099MISC (for self-employed, freelancers and contractors), partnership income (Schedule K-1), unemployment compensation and state tax refunds (1099-G) ·Marketplace health insurance records proving insured status (Form 1095-A) or exemption status (exemption certificate number) ·Form 1095-B or 1095-C from an employer or private plan confirming health insur-

ance coverage ·Tax reporting documents from banks and investment companies, including retirement plans, such as 1099-INT, 1099-DIV, and 1099-R ·Statements detailing stocks and property sold, such as 1099-B ·Documents showing contributions to a 529 education savings plan ·Receipts, acknowledgment letters, and bank records to substantiate charitable donations ·Statements or receipts showing tuition paid for college and 1098-T ·Statement showing amount of mortgage interest (Form 1098) and substantiation of real estate taxes paid.

Next, an organizational expert shared the best tips on how to categorize receipts and organize tax

information in a helpful yet trendy way. Think about it as the Feng Shui of taxes.

Step 1: find the space According to Mikita Burton, a lifestyle coach and blogger, the first step in organizing taxes also comes down to considering available space.

“If you have a home office, identify one drawer in a file cabinet for current tax-related paperwork and returns from recent years,” said Burton. “If space is limited or if you don’t have a home office, opt for an attractive storage box or portable filing solution that requires little space on a shelf or in a closet. Choose a solution in materials and colors that coordinate with your décor.”

Step 2: choose a storage system

Choosing a system that works means finding one that each person can stay true to. Burton explains that is why it is so important to find a personalized system that truly will help each person organize their tax information.

“So, whatever method you choose to store your paperwork, it should be easily accessible, which means you’re more likely to use it,” said Burton.

“Commit to immediately filing tax-related items as soon as they arrive in your home.”

Step 3: label items Labeling items is key.

Most tax documents should be kept for at least three years, so think about different folders or filing options that have the dates marked clearly.

For example, have labels that clearly mark the

location of the W-2s from 2018 versus the 1099s from 2017. Knowing exactly where this information is located will help in the long run. Whether filing in an actual tax office, on your own from a laptop, or using a virtual tax professional, having these documents accessible will save some time.

Think about it as a grab and go approach.

Step 4: plan ahead Lastly Burton suggest that taxpayers “plan ahead.” To avoid lastminute hassles, create a calendar to plan tax time to-dos, and aim to have taxes filed well in advance of the deadline.

Work back from the target completion date and set aside a time to organize receipts for deductions, meet with a tax advisor, or go online to prepare the return, etc.

Taxpayers will experience less stress when they divide the tax return process into manageable projects.

In addition, taxpayers can make organization and the filing process simple by using MyBlock. MyBlock offers secure and safe tax document storage for H&R Block clients, and is accessible via the MyBlock mobile app. It’s all the taxpayer’s information with the click of a button.

Ready for tax time With these four easy steps, anyone can make tax time less stressful and maybe even find a new use for that old shoebox.

Hutton, Sharita. “Tax Clean up Just in Time to File: H&R Block Newsroom.” Tax Information Center, www. hrblock.com/tax-center/newsroom/ irs/forms/tax-clean-up-tips/.

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 deduc-

tion for both businesses.

However, there are rules you must follow.

You can claim the

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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 Busi-

ness 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.

“Home Business Tax Deduction for Two Businesses: H&R Block.” Tax Information Center, 1 Feb. 2020, www. hrblock.com/tax-center/ small-business/self-employed/ home-office-deduction-twobusinesses/.

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APRIL 24 - 30, 2020