Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-11-2015, 09:38 PM
Junior Member
 
Join Date: Jan 2015
Posts: 1
business losses

I have a painting business and was doing a big job for a General Contractor. While doing tge job the General Contractor backed out and my company took a loss of $27,300.87. When filing my taxes this year how do I deduct this loss or what can I do to help with this loss? Any help would be appreciated. Gunny



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-13-2015, 02:05 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by gunny2005 View Post
I have a painting business and was doing a big job for a General Contractor. While doing tge job the General Contractor backed out and my company took a loss of $27,300.87. When filing my taxes this year how do I deduct this loss or what can I do to help with this loss? Any help would be appreciated. Gunny
you can not deduct the lossof 27300.87 on your 2014 return as youhave no income generated. Net Opersting business Lossess come up when you have more tax deductions than taxable income. You can figure this out easily by completing your tax return. You may have an NOL if you have a negative number on the line for taxable income before you deduct your personal exemptions on line 41 on Form 1040.so, If your business losses are more than your total income for the year, you can use the excess loss to lower your income and reduce your taxes in another year. For example, if you have an NOL in 2014, you can use it to lower your taxes in 2002 or 2013, or possibly in 2015 and later. There are two ways to claim a refund for prior years’ taxes: You can file IRS Form 1040-X within three years, or you can seek a quicker refund by filing IRS Form 1045. If you file Form 1045, the IRS is required to send your refund within 90 days. However, you must file Form 1045 within one year after the end of the year in which the NOL arose,in your case by Dec 31 2016. So to claim your losses, you must file your 2014 return .



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How can a taxpayer convert disallowed passive losses into tax-saving deductible losses? TaxGuru Rental Real-Estate 0 01-21-2011 02:32 PM
Business losses doubleddd2360 Limited Liability Company 1 01-27-2010 10:25 AM
What would be deductible business expenses for my new retail business? frankietan Sole-Proprietorship 0 05-05-2008 07:30 PM
How can I take advantage of business losses in my unincorporated business? larry Sole-Proprietorship 1 01-24-2008 06:15 PM
Maximum Losses allowed for rental losses? Kathy Rental Real-Estate 4 07-30-2007 04:11 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.