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if i show more of a loss than profit for a small business, will i get money back when i file taxes?

Sun, 08 Jul 2012 09:17:18 +0000

Question by MondayMorningMan: if i show more of a loss than profit for a small business, will i get money back when i file taxes?
also. if my small business is a side thing, and i have a current job, will i get money back from the taxes at my job?

Best answer:

Answer by DEBORAH F
You can subtract your business loss from your job income to determine your total income. Your income tax will be less than it would have been for the job alone. But the lower income will affect a bunch of other tax credits. Especially if you have kids, some credits might go up and some might go down. Depends how much you make.

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Q&A: If you own a small business and your taxes go up how will you make up for the loss in income?

Sat, 19 May 2012 18:17:48 +0000

Question by jkherberger: If you own a small business and your taxes go up how will you make up for the loss in income? Best answer: Answer by robert eraise prices, if you are in a crucial industry, then the … Continue reading →

What is considered a “loss” in regards to tax and small business?

Fri, 11 May 2012 18:00:49 +0000

Question by XMS: What is considered a “loss” in regards to tax and small business?
I am thinking about becoming a Pampered Chef Consultant, which is technically considered my own small business. I will recieve a 1099 and I am able to deduct expenses including milage, home office expenses, ingredients, etc. I was told that I might show a “loss” for the first year or so while I am getting my business up and running.

Can you explain what this is exactly? Does this mean that I don’t pay any taxes? That I don’t make a profit? I am so confused.

Thanks for your help!

Best answer:

Answer by cjmcewen
I hope I can answer this. Tax time is confusing to me so I get the names wrong. But here goes. As with any small business there is a form you fill out where you put all the receipts totals for your mileage, office supplies, etc. When you compare that total to what you made, it looks like a loss. You will make money in the PC business if you work your business meaning making those follow up calls, etc. I have been a consultant for over a year and love it. and I make money. At tax time though, I want my taxes as low as possible, so I include my phone bill. That is a necessary expense for a home business. Internet. A portion of my groceries as I try recipes at home. These are things I would be doing anyway. I would be buying groceries and feeding my family. Paying my phone, etc but now I can write it off. So even at tax time, when you deduct what I made from my “expenses” it looks like I didn’t make any money. Does that make sense?
Your only upfront costs on this PC business is going to be your kit. Depending on which kit you purchase you could make that back in your first show. I wouldn’t purchase anything else until your first commission check. You can email or call me and I’ll be happy to answer any other question or give pointers. cjmcewen@yahoo.com 501-626-5281

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Small Business loss. Taxes. How does it work?

Sat, 19 Nov 2011 06:26:43 +0000

Question by Bob Jackson: Small Business loss. Taxes. How does it work?
I have operated an LLC for 1 year now an d I’m getting ready to file with HR Block premium. My business expenses total over $ 20,000 dollars. The business made about $ 6000. I work and have a daughter also and made over $ 11,000 there. How will this be treated, what will happen. Will I get a refund…money back from my loss….please explain. Thanks!!

Best answer:

Answer by Bash Limpbutt’s Oozing Cyst©
Not nearly enough information to say. Without knowing what the expenses were for it’s not possible to determine if you have a taxable profit or loss for 2010 from the information provided.

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Why do you still have to file taxes when your small business has a financial loss?

Sat, 12 Nov 2011 21:07:18 +0000

Question by ladybug: Why do you still have to file taxes when your small business has a financial loss?
I’m trying to understand what the taxes would be based on if you didn’t make a profit. Do you get a bigger refund the higher your reported loss??

The business doesn’t have any employees.

Best answer:

Answer by DidYouSearch?
Two reasons (of many I’m sure):
1. Some of your losses may be eligible to ‘carry forward’ to offset future earnings or ‘carry back’ to refund past taxes paid in previous years.
2. The IRS is focusing more closely on small businesses to determine whether you are really ‘in business with a profit making motive’ or just trying to create losses to offset other tax liabilities. If they decide that you aren’t a ‘for-profit business’ (basically calling you a hobby business) they will only allow you to deduct expenses equal to your revenues eliminating any tax losses that might offset other tax liabilities. This is potentially a huge deal to small business startup that you might want to research more. There was another recent question about this issue here:

http://answers.yahoo.com/question/index;_ylt=As4IetJ.O7nxvNfsfOMu2Wjsy6IX?qid=1006012507472

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which is better for small business taxes…profit or loss?

Sun, 25 Sep 2011 20:37:59 +0000

Question by cakcynthia: which is better for small business taxes…profit or loss?
some people say show a loss. we have a lawncare business and have a lot of deductions. We will still show a profit again this year.(2yr old business) A couple of business owners tell me to use more deductions and show a loss. We have two small children, so wouldnt it be better to show more of a profit for the tax credits. I dont get it. Would we be better. I dont want to mess them up. I am using turbo tax.

Best answer:

Answer by Richard K
When completing your business return to Schedule C should acurately portray the result of your business. It should include all revenue and all actual costs of conducting the business. The result of this honest calculation is then added (profit) or deducted (loss) from your other income to compute your income tax.

Is is considered fraudulent by the IRS to manipulate your business results positively or negatively in order to achieve a lower tax liability.

Richard K
HR Block

This advice is based upon our understanding of the law in effect at the time it was written as it applies to the facts provided by you. See my profile for more information.

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Q&A: what happens if you have a loss on your small business taxes more then 3 years?

Mon, 20 Jun 2011 04:53:11 +0000

Question by jennifer r: what happens if you have a loss on your small business taxes more then 3 years?
I have a small internet store and this will be the fourth year I had to claim a loss on my taxes “due to the economy.” I’ve heard you can only claim a loss for 3 years, is that true?

Best answer:

Answer by SmartA$ $
There’s no limit to the number of years you can claim a business loss on your taxes. However as a general rule of thumb, if your business isn’t showing a net profit after 3 years, they will become very suspicious and you become a prime suspect for an in depth audit. If you have good records and can justify every little expense, then you will make it through the audit without too many changes.

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