Can you claim a loss on a business if...?

Question

Can you claim a loss on a business that has no actual income during the current tax year, if it had income in the previous year. Technically speaking this is not a new business.

Answer 1

Losses can only be claimed against any income.


http://www.irs.gov/taxpros/article/0,,id=160687,00.html


good luck

Answer 2

Yes. As long as you do not claim losses in three of five years. If you do claim losses continually, the IRS will perceive this business to be a "hobby", and then disallow it for the current year as well as in prior years.