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Old 06-10-2014, 11:32 AM
 
4,667 posts, read 2,992,950 times
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Hey everyone, so me and my wife opened a business in December, we got our taxes done for last year just fine, but I had a couple questions for our taxes this year. Our business will have a net loss this year by about $8,000, which is more or less what we expected. For example sake, lets say we had $50,000 in expenses and $42,000 income. We will be up to date on our sales tax. Before we opened the business I set some money aside just for tax purposes. My question is from what I understand since we have a net loss our taxes will effectively be $0 right? Also, we won't get any "refund" correct since we are paying taxes annually? Is that enough information to answer the question? Our taxes are fairly simple and I've always done it myself, and would like to try to continue to do so.

Thanks
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Old 06-10-2014, 11:57 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,244 posts, read 60,421,211 times
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because you have to do a schedule C in addition to the 1040 I would suggest the more expensive TurboTax program, I used it many years for my business. You are supposed to pay taxes quarterly but there is no penalty if you don't owe any, but the first year that you make money they could fine you for not doing advance quarterly payments. You could still get a refund if one of you has a job and there has been withholding from it, and you could get earned income credit. The IRS will scrutinize returns of the self-employed that show no profit more than 1-2 years in a row, because if there is never any profit to tax it's not considered a business but a hobby. I found this on my Turbotax tips:

https://turbotax.intuit.com/tax-tool.../INF22852.html
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Old 06-12-2014, 04:23 PM
 
420 posts, read 680,902 times
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Your question cannot be answered with the information you provided. You should tell us what forms you are filing/ what type of business you run. If it is a Sched. C, the requirements are different from an 1120 or 941.
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Old 07-13-2014, 08:07 PM
 
16 posts, read 36,697 times
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You really should hire an experienced CPA to have your taxes done and provide you with expertise. Many times they can save you more in taxes than their what their fee is. It's rather difficult to answer a question like this on a chat board; there is so much more that goes into it.
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