business tax question by Starman: Does my business have to make any money for me to take tax deductions?
I set up a business that has brought in zero amount of money. I have invested money in materials to do this business and I am wondering if I can take business tax deductions when no income can be reported from it.
business tax best answer:
Answer by SmartA$ $
Yes, you can deduct business losses from your personal income. Typically speaking, the IRS will allow you about 3 years of losses after start up before they get suspicious and start auditing you. However, if something doesn’t add up, they could audit you at any time. Just make sure you have all the proper documentation so that if you are audited, you can show that your deductions are legitamate.
Warren Buffett discusses his New York Times Op-Ed piece ‘Stop Coddling the Super-Rich’ which calls on Congress to increase taxes on the Super-Rich like himself www.CharlieRose.com
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