I started a corporation this year and was unable to pay myself, I basically worked for free and had family live with me and they helped with all my expenses. I will have approx. 30,000 in deductions, will I get money back and if so how do I fugure how much.
2007-12-12 09:42:28 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Is it an S-Corp or C-Corp?
Each one is treated differently. You won't get anything back unless you paid something in and it doesn't sound like you did. The $30k may create a Net Operating Loss. It won't get you anything back this year but it can offset future income.
Whatever you do, do not try to deal with this on your own. Get yourself to a CPA or EA soon. A few hundred dollars spent now may save you thousands later.
2007-12-12 09:50:52 · answer #1 · answered by Wayne Z 7 · 3⤊ 4⤋
You will have to show a net OPERATING loss, not just a loss of money.
If you can do this, you will pay little to no taxes for the year, however it will only apply for the year and not for future operating expenses because taxes are paid on an annual basis only.
2007-12-12 17:57:57 · answer #2 · answered by kNOTaLIAwyR 7 · 0⤊ 1⤋
Unless you paid in estimated taxes, there's nothing to get back, and no reason to file. You might be able to take those expenses against future years profits.
2007-12-12 22:20:25 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
go to H&R block they do the work so don't have to
2007-12-12 17:51:05 · answer #4 · answered by steve b 2 · 0⤊ 4⤋