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We started May 2007 and we are done .... (we've been done for a while). It was a service based business for pavement marking. My dh thought it would be a hit as it was in NJ but its not. OH WELL! Moving on...
So we made a huge negative. We had 2 jobs (small ones) which resulted in a whopping $1000 in payment minus out the machine that cost $5000, the paint $100, the gas for machine ... Get my drift? We didn't "Make" anything.
So if we file a return its going to be filled with the STUFF we bought and nothing more.
I hope someone helps me out with this. And yes we did send the dissolution report to end business (we were an S Corp) with Sec of State.
We started May 2007 and we are done .... (we've been done for a while). It was a service based business for pavement marking. My dh thought it would be a hit as it was in NJ but its not. OH WELL! Moving on...
So we made a huge negative. We had 2 jobs (small ones) which resulted in a whopping $1000 in payment minus out the machine that cost $5000, the paint $100, the gas for machine ... Get my drift? We didn't "Make" anything.
So if we file a return its going to be filled with the STUFF we bought and nothing more.
I hope someone helps me out with this. And yes we did send the dissolution report to end business (we were an S Corp) with Sec of State.
Thanks for any help given.
Linda
This is part of the reason why I never suggest people forming a "corporation" until a business starts to generate funds.
Technically, since your company did operate, and did receive funds, you need to file a tax return for the corporation, where you get to claim all the write offs. Another reason is that your "pay" you would have to file on your individual tax returns and if you claim a paycheck, against a company that doesnt file tax returns, all red flags could be raised.
For the most part, your corporation received income, it needs to file a tax return even if its one return.
Had this been a DBA, you could have personally written off the losses against any income you receive against your "real" job.
Thanks. Well we were advised wrong. What can I say? We looked for advice and we were steered wrong.
My dh's "real" job is nothing even close to this. He just wanted something on the side thinking he would make a killing. NOT!
Anyhoo... he never took a paychek to himself. The whopping 2 checks that we took were written to company name and deposited in to company bank account. We never gained ANY income for ourselves WHATSOEVER. Whatever money came in went back out as we were the ones that funded everything to begin with. I am so over the money loss thing. My husband got the money w/out loans and such. He saved it up over time and had this desire but it fell a part. I feel for him but now we have to just finalize the mess.
So as for the income part.. I can't claim income .. we never wrote a paycheck to ourselves or anyone for that matter.. there was never money to do it with. The first job's money paid the 2nd job supplies LOL See where I am going here?
Thanks. Well we were advised wrong. What can I say? We looked for advice and we were steered wrong.
My dh's "real" job is nothing even close to this. He just wanted something on the side thinking he would make a killing. NOT!
Anyhoo... he never took a paychek to himself. The whopping 2 checks that we took were written to company name and deposited in to company bank account. We never gained ANY income for ourselves WHATSOEVER. Whatever money came in went back out as we were the ones that funded everything to begin with. I am so over the money loss thing. My husband got the money w/out loans and such. He saved it up over time and had this desire but it fell a part. I feel for him but now we have to just finalize the mess.
So as for the income part.. I can't claim income .. we never wrote a paycheck to ourselves or anyone for that matter.. there was never money to do it with. The first job's money paid the 2nd job supplies LOL See where I am going here?
It might as well have been a hobby.
NcMommy
One way around this MIGHT be, (and I advise you to ask an accountant), is to have yourself personally buy the assets of the corporation, so you can claim the expenses. Since the corporation is closed, you have to do something with the assets. I would advise you that you would probably have to do the transaction before the end of the year, but it would be a safe bet that you still could get some tax write off on your personal taxes buy buying out the assets of the corporation. Again, ask a professional before you do this because I'm not an accountant, but I cant see why it wouldnt apply.
If you have Corp. you have to file a return, that's the law. In your case, under section F of the 1120S form, when you file the return, you will check box #2 that it is a "Final return."
Please note that the 2007 forms maybe a bit different, so recheck this when IRS publishes 1120S for 2007
I think I will just go to local tax place and bring my stuff to do this right. I don't want to have the worries about anything.
Thanks for your advice.
NcMom
I would consider buying out the "corporate" assets before the end of the year, so you can take advantage of writing the expense off on your taxes. Perhapse a visit to the local tax place before new years would be suggested.
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