I started a small work at home business a few months ago as a part time venture. As of yet I'm not making any money. I was told that as a small business owner that I would have a $3500 tax credit. Is this so?
2006-11-02 10:07:51 · 2 answers · asked by 52donnie 1 in Business & Finance ➔ Taxes ➔ United States
I would be interested in who told you that and what they based it on. I personally am not familiar with any "Tax Credit" for home based sole proprietorships. You may have deductible expenses that, for the first year or so, add up to show a negative income (loss) to decrease your other taxable income, but to come up with solid, predictable amount with the information you have provided in your question is not possible. My advice: keep good records of your income and expense (related to the business) and consult a professional tax preparer versed in small business tax issues. This does not mean that you need to spend big money on a CPA, just ask around because word of mouth is the best bet. I also suggest you find and consult with someone prior to the end of this tax year.
2006-11-02 11:18:08 · answer #1 · answered by Great Tax Info 2 · 0⤊ 0⤋
I have never heard of a credit just for having a small business. There may be a credit for specific types of businesses. I suspect any such credit would be at the state or local level. Without more information, I'm not sure where to research the issue.
2006-11-02 13:11:52 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋