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Tax filing sole proriertor

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Oswalla

Junior Member
What is the name of your state? Oregon.

I usually file single, but last year I got a EIN # for a internet business that did not make a profit. I had to attend to personal matters and had to drop everything. The few sales I did have turned no profit and some dumb buying decisions left all sales a loss plus the purchases I made to start the business, software, training, manuals etc. My question is how do I file this year, I dont think I can deduct these losses because of IRS guidlines, so I,ve read, they might consider it more of a hobby than a business. Do I file the business loss and gains or just not include it with the W-2 from my employer. I also had a refinanace with cash-out on my home, do I have to pay taxes on this. I usually use Turbo Tax, I dont know any CPA's.

Any suggestions for which direction to take would be helpful.

Thanks for your time, Mike.
 


LdiJ

Senior Member
What is the name of your state? Oregon.

I usually file single, but last year I got a EIN # for a internet business that did not make a profit. I had to attend to personal matters and had to drop everything. The few sales I did have turned no profit and some dumb buying decisions left all sales a loss plus the purchases I made to start the business, software, training, manuals etc. My question is how do I file this year, I dont think I can deduct these losses because of IRS guidlines, so I,ve read, they might consider it more of a hobby than a business. Do I file the business loss and gains or just not include it with the W-2 from my employer. I also had a refinanace with cash-out on my home, do I have to pay taxes on this. I usually use Turbo Tax, I dont know any CPA's.

Any suggestions for which direction to take would be helpful.

Thanks for your time, Mike.
Having a business has nothing to do with filing "single". It has nothing to do with your filing status.

There is no tax issue related to your cash out refinance.

If you intended to make a profit on your internet business, and it simply failed, then it was not a hobby. You would file the income and expenses on schedule C. The losses from the business will offset some of your other income.
 

Oswalla

Junior Member
Thanks LDiJ

The intent to make money was there by registering for a EIN# and registering business name with state ( no license needed in state or county) and paying for training and software. Might I add most training is bogus for internet business. I will now figure out what IRS will allow for deductions, offsetting those losses will benefit me greatly.

I realize now this intended for Tax law and I my question probably falls under tax preparation advice type forum, so I am sorry for posting here.
 

LdiJ

Senior Member
Thanks LDiJ

The intent to make money was there by registering for a EIN# and registering business name with state ( no license needed in state or county) and paying for training and software. Might I add most training is bogus for internet business. I will now figure out what IRS will allow for deductions, offsetting those losses will benefit me greatly.

I realize now this intended for Tax law and I my question probably falls under tax preparation advice type forum, so I am sorry for posting here.
You were not wrong to post here. Asking for any advice regarding taxes is a tax law question.
 

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