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federal tax question

    • 59 posts
    January 13, 2008 2:17 AM EST
    It is to your advantage to file a Schedule C with your Individual return this year, doing so will enable you to deduct and/or carryforward some of those business expenses.  It is very common that businesses lose money in the first year, so don`t be afraid of that when filing.  As long as you have followed the necessary steps to try and make a profit and have a legitimate business you will be fine.
     

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    Gina L. Gwozdz, CPA
    http://GLGcpa.com
    http://TaxTreasures.com

    • 59 posts
    January 12, 2008 3:31 PM EST
    Yes!!!  There are lots of tax breaks for start up businesses.  Do you have mileage?  Advertising?  Business cards?  Dinner?  Equipment?  Did you run the business out of your home?  There are other tax breaks for businesses.  Check with your tax person.  They should know.  I would also recommend a book by Ronald Mueller named It`s How Much You Keep That Counts. 

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    • 13 posts
    January 12, 2008 12:05 PM EST
    Hi,
     
    I`m a sole proprietor who registered my business in Feb. 2007.  I had no business income this year but I have startup business expenses.  Do I need to file a business tax return for 2007. thx.
    • 5 posts
    January 24, 2009 6:52 AM EST
    My opinion...  My CFO on the GO! gave the correct answer..
     
    You gave more than enough info for someone to be able to state
     
    Startup expenses are amortized starting in the 1st year the business is open and doing business.

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    Warmest regards, Patricia Masters, EA EA = Enrolled Agent = only tax professionals who receive their license to represent taxpayers (you) before the IRS from the U.S. Treasury.