taxes on zero profit or income??

[worthspending]

What is the name of your state? Indiana

I formed a LLC mid-year in 2007. I have spent money, however, I haven't made a dime. Not even one sale. This was expected due to the nature of the business. I've heard there is a mandatory tax for the self-employeed.

I am interested in knowing what my taxes will be like this year?? Will I pay anything?? Also, I sold my primary residence in 2007. However, I sold it for the same amount that I paid for it.

Thanks

 

[LdiJ]

What is the name of your state? Indiana

I formed a LLC mid-year in 2007. I have spent money, however, I haven't made a dime. Not even one sale. This was expected due to the nature of the business. I've heard there is a mandatory tax for the self-employeed.

I am interested in knowing what my taxes will be like this year?? Will I pay anything?? Also, I sold my primary residence in 2007. However, I sold it for the same amount that I paid for it.

Thanks

Self employment tax is only assessed on profits, since you don't have any profit, you won't have any self employment tax. However, your losses on the business may be able to offset other income and if not, can be carried forward to future years, to offset future profits.

 

[efflandt]

IRS does not require reporting sale of your primary residence unless you have a "gain" that is NOT excluded. Not sure about IN unless their instructions specifically mention reporting that somewhere.