I have a consulting business (s-corp). Can I report a loss during periods in a year when I have had no clients and essentially no earnings during these periods? I have regularly paid myself a salary in these periods.
2007-11-21 02:25:46 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I guess I didn't frame my question properly. If in a year I had earnings during 10 months and no earnings for 2 months. Is it possible to claim this 2 months period of non-earnings as a deductible? I have regularly paid salary using the 10 months of earnings.
2007-11-21 03:51:59 · update #1
No, there is no "deductible" for not receiving income. You don't receive any income and therefore don't pay any tax on the income that you didn't receive.
2007-11-21 05:16:16 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
how did you pay yourself a salary if you didn't have any earnings?
Generally, though, you can report a loss from the business if your ordinary and necessary business expenses exceeded your business receipts.
2007-11-21 03:06:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋