Contact UsI started a jewelry business this year, but my expenses have been more than my sales. I will not make a profit this year. Am I required to report my sales at year end?
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John Stancil
Yes, for a couple of reasons. First, you should report all of your business activity, profit or not. When you file the return, one of the questions is "Did you begin this business in 2013 (of the current year)?" If you don't file in the initial tax year, the IRS may subsequently be looking for the return for the first year and begin making inquiries.
The second reason for doing so is that you probably will be able to deduct the loss if you have other income. If you don't have other income, you may be able to take a loss carryforward and apply the loss to future gains.
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503 weeks ago
The second reason for doing so is that you probably will be able to deduct the loss if you have other income. If you don't have other income, you may be able to take a loss carryforward and apply the loss to future gains.