Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
Greetings to everyone on this forum. I am reaching out because I would appreciate some insight from anyone who has navigated a similar situation before.
Two small business owners are operating out of the same commercial unit, which has been split into two separate spaces, yet they share a single electricity meter. Currently, Exelon issues the entire bill to just one of these businesses. One owner is registered for sales tax, while the other is not—at least for the time being. To settle their shared utility costs, the first owner intends to re-invoice a portion of the Exelon bill to the second owner. My question is this: would such an invoice be considered a valid, legitimate document for the second owner to use when recording electricity expenses as a business deduction?
Two small business owners are operating out of the same commercial unit, which has been split into two separate spaces, yet they share a single electricity meter. Currently, Exelon issues the entire bill to just one of these businesses. One owner is registered for sales tax, while the other is not—at least for the time being. To settle their shared utility costs, the first owner intends to re-invoice a portion of the Exelon bill to the second owner. My question is this: would such an invoice be considered a valid, legitimate document for the second owner to use when recording electricity expenses as a business deduction?