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View Full Version : Tax questions....to file or not to file.


drsogr
11-02-2004, 06:48 PM
Basically I have done very little work this year. I was planning on learning this year and getting started next year. Fortunately I got sucked into some work and learned some lessons this year that will help me next year. My question is should I file business taxes? I work fulltime, and do this part time. I have spent more on my business this year than I have made. I am a sole-proprietorship.

I need to find an accountant, is it best to find one now, or wait until tax season? How will they charge me? I know during tax season they charge a flat rate....how about during the offseason?

Thanks for all your help.

tonygreek
11-02-2004, 07:16 PM
find one now. worst time is during the tax rush.

i'd file so that you can either take a loss this year from the venture, or carry it forward to next year. whatever you do, talk to an accountant if you're not sure what to do.

MMLawn
11-03-2004, 10:51 AM
You really have no choice, esp if you had other income as well because as a SP you file all income sources with your personal taxes.

MacLawnCo
11-03-2004, 10:54 AM
you must file. no legal way not to. the loss on the business will offset income from your other job.

Electra_Glide
11-03-2004, 12:17 PM
I agree with MacLawn. In one way, it's a good thing. As a sole proprietor you'll be able to use your business loss to offset some of your income from your full-time job, and lower your overall tax burden.

BTW...I'm in the same boat for this year as you.

Take care...

Joe Kantz

Team Gopher
11-03-2004, 07:57 PM
Hi drsogr,

Do you know any other local business owners that could suggest a local CPA?

drsogr
11-03-2004, 09:37 PM
I haven't even began to look. I was looking at the possible tax benefits of filing, since I lost about $200 in my business this year and was wondering if it would even be worth filing, considering I will probably spend $300 getting an accountant and everything else. It sounds like I have to file no matter how much I make or lose for that matter. I was under the impression if you lost money that could consider your business a hobby.