Mark and Matt,
My side hustle is up and running, I am currently Sole Prop (with unique business name and separate EIN) until the revenue climbs, then will convert to LLC.
As I stated in a previous question I rent out construction equipment and store everything in new shop (2400sqft) constructed on my property this year 2023. I also have a dedicated room/office (90sqft) in my 1900 sqft home. Few questions, #1 how much of the construction costs can I write of this year ( or does it make sense to try with the low revenue this first year). #2 can I deduct the equipment purchases made this year of the rental equipment? I have approx $6-7k cost buying the equipment. # 3 how do I compute the percent of home/shop used as I use the home and shop for business as broken down above? Thanks