Originally Posted by warriorlawn
When I file my business taxes, how do I claim a loss? If I claim a business loss, will this loss be deducted dollar for dollar from my personal income?
Start by filling out Form 1040 Schedule C
for the current tax year. Take a look at the form now so you have an idea of how one thing affects another. In the end, if your expenses exceed your income that result will be shown on this form. From there it tells you where to place this number on your personal income tax return Form. 1040.
I am not an accountant but I believe the answer to your dollar for dollar question is: it depends somewhat on the source of your other income. Earned income, such as from a W-2, I believe can be offset dollar for dollar. For investment income I *think* there are some exclusions which could limit the extent to which a business loss can offset income. I believe any unused business losses can be carried forward to another tax year. You will need a tax preparer or accountant if you are unable to accurately complete these forms yourself. If you think that will be the case, talk to somebody about these questions before the business activity takes place, or as early the tax year as possible.
Good luck with your business and getting answers on your other questions.