I have lost money joining various online businesses, can I claim that money on my taxes as business expenses?
2007-01-15 22:20:28 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Without knowing the nature of your investment, it is impossible to say. Did you buy stock in the business? if so, you must either sell the stock or have the IRS agree that it became of negligible value during the year you wish to claim the loss.
If you invested in a partnership, a lot will depend on whether you were a general or limited partner. You can claim trading losses (restricted if you are a limited partner) but would not be able to claim the loss on your investment until you left the partnership or it was dissolved.
If you worked as an independent contractor for online businesses, losses can be claimed. What you have to do is compute your profit or loss on your trading activities (report on schedule C) and claim that.
Frankly, I think you need an accountant.
2007-01-15 22:38:00 · answer #1 · answered by skip 6 · 0⤊ 0⤋
If your online business activity was a side business and you have a job and will receive a W2 you will only be able to write off any losses against income for the online business activity, not from your W2 income.
So, if you made money from your online activities, yes file schedule C and if you did all this from your home you can also claim home office expenses.
2007-01-15 22:41:17 · answer #2 · answered by edoubleyou 4 · 2⤊ 0⤋
I would check with the IRS but i think you would have to file a schedule C business profit/loss, If you started these businesses and are LLC, inc, or co. Otherwise I don't think you can take any off.
2007-01-15 22:31:11 · answer #3 · answered by kygirl40299 2 · 0⤊ 0⤋