posted on April 7, 2005 08:09:21 PM new
I haven't shown a business loss on my tax return since 2001. Seems I could claim one again this year (-350.00 total) if I claim ALL the deductions coming to me. Am I asking for trouble??
posted on April 7, 2005 08:20:26 PM new
If you claim a loss in no more than 2 out of 5 years, it will not raise any red flags. Just be sure there is nothing else on your return, such as tax shelters or sham trusts etc. that would raise attention.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on April 7, 2005 10:31:32 PM new
If everything is on the up and up, I wouldn't worry about it too much. I think it is unlikely that IRS will go after someone with a $350 loss.
posted on April 7, 2005 10:57:05 PM new
I like to show a profit of $100 to $1000 a year even though I could easily show almost every year. That way, if I get audited, I claim everything and everything, they end up the audit owing ME money and that usually prevents getting audited again.
posted on April 8, 2005 06:47:38 AM new
If I remember correctly, my accountant told me that a person can only show a loss for three years in a row. After that, the IRS will consider it a hobby and you can no longer claim it as a business. However, if you even show a $1 profit, it shows you're trying and heading in the right direction.
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Before you criticize someone, you should walk a mile in their shoes. That way, when you criticize them, you're a mile away and you have their shoes. ~
