Your Tax Questions Answered
Small Business Tax
Kiplinger editorial director Kevin McCormally and fellow tax experts Peter Blank and Mary Beth Franklin tackle your most pressing tax challenges.
April 14, 2009
QUESTION: I work and also own a small business I started the business in 2008.I loss money in the business due to start up cost.Do i have to report my losses or business expenses in 2008 or can they be carry forward in 2009.
PETER BLANK ANSWERS: If your business is a sole proprietorship or an S corporation, the
business loss flows through to your personal tax return and can be used
to offset your other income.
If the business is a C corporation, the firm can carry forward the loss from its first year to offset its profit in a subsequent year.
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Reader Comments (1)
Posted by: Daphne Brown at 01/22/2010 10:47:33 AM
I started an internet business in May 2009 I have invested about $8000.00 i have made no money at all. Do i have any hope of recouping some of my loss through taxes? Please help i dont know where else to turn