My wife and I have a small business and have not make any money, but have spent a lot do we get a tax break?

Answer 1

Absolutely. In fact, a lot of people mistakenly don't do a Schedule C to record the activity from their business, and as a consequence, miss out on all sorts of tax breaks that are due to the expenses exceeding the income. As long as the business "started" by the end of 2006, it should be on your tax return. If your losses exceed all of your other income, you will be able to carry that Net Operating Loss (NOL) backwards or forwards. Carrying it backwards allows you to do an amended return for an earlier year and subtract off your 2006 NOL and get a refund. Of course, this all assumes your loss from the business exceeds all of your other income. I suggest hiring a tax professional to do your Schedule C and hiring a really smart tax professional if NOL is involved.

Answer 2

Get a good accountant. They're are a lot of tax breaks out there -- yours for the taking, but you probably need someone familiar with them.

Answer 3

You should be eligible to claim a business loss. But be aware that other factors could impact your ability to claim that loss.