Taxation question - if you have a loss at the end of the year, what can you do?

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pinoyheat551

New member
I am barely breaking even for the first two months in business. If i have a loss at the end of the fiscal year, can i claim that on taxes? Lets say, i have a loss of 10,000, does the IRS give you 10,000? How does that work? I am a LLC by the way. Any help would be appreciated.
 
Man, that would be sweet if they gave you $10k. The IRS is only interested in your income and their chunk of it. The only way a loss would be to your advantage is to decrease some sort of gain from another related business entity.
 
Not sure how it works in the USA, but in Canada, if you operate at a net loss at the end of your fiscal year, your net revenue would be $0, which is what would be taxed. In addition, if you previously paid taxes in prior years, you can get some of that back (that's actually a calculation based on your total net losses vs federal taxes paid in previous years, not exactly sure on how it's calculated actually).
 
Jean-Claude said:
If you're in business for yourself you need a CPA. They can help you with this.
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Very much agreed. Having a professional take care of at least the taxes is just plain smart.
 
Get a cpa.

A) the portion in which they help you in your business is a write off.

B) There are nuances to how it's treated and cpas are there to know these nuances.



With that said I believe the loss is netted against your taxable income and the remaining balance is carried forward x amount of years and/or back x among of years.
 
Also, if you ever get audited the CPA will, and effectively if a good one, represent you during the audit.

Good piece of mind.
 
gtppilot said:
Also, if you ever get audited the CPA will, and effectively if a good one, represent you during the audit.

Good piece of mind.
Click to expand...

Though not for free of course ;)
 
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