If I bought a business this year for $70,000.00 and I earn $300,000.00 in my regular job can I write off 70000

Question

I do not plan to show a profit this year in the business I bought but thought that the tax deduction for the purchase may help me in my personal taxes.

Answer 1

Depends on how your business is listed.. Sole proprietor, corporation? If you're sole, you can deduct losses and do not have to show profit for either 2 or 3 years out of 5.. Can't remember exactly. If you're a corp. or have incorporated, your losses are limited, and if a corp, you must file. Been awhile since I did professional taxes but if you're filing a schedule C, as in sole prop. you need to fill out the form, with your expenses, etc. and you'll show the loss, which will come off of the $300,000 you make from your regular job.

Answer 2

Business that do not have income are considered
Hobby by the IRS and do not qualify for business usually .
You better get a damnnnn good tax accountant for this one .

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