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Old 10-14-2015, 03:00 PM
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can i estimate expenses on NOL tax form 1045?

need to file my net operating loss on a small retail biz, hard to determine exact expenses like repair costs, starting inventory etc...

can i estimate repairs (near accurate, say around 4k) or do i need an exact number?

does starting inventory include the bill of sale cost for the turn key biz, or just what i purchased at opening for resale?

do i subtract cost of CC merchant machine, beverages for resale, merchant account fees, etc?

my NOL for 2014 is somewhere between 25 and 50k

thank you very much in advance !



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Old 10-14-2015, 09:23 PM
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can i estimate repairs (near accurate, say around 4k) or do i need an exact number?======>Needless to say accurate / exact number is better;however you may claim estimate repairs with some evienc of proof ,i.e., bank stmt or etc, later. All of your claimed business expenses on your income tax return need to be supported with original documents, such as receipts. if you are ever audited, you may have to show receipts to prove that these expenses actually occurred.. Generally speaking, canceled checks, credit card , your bank statement ,transaction records and bills can be sufficient proof of an expense. Many people have online access to these records. You may also be able to access receipts for purchases made online.
does starting inventory include the bill of sale cost for the turn key biz, or just what i purchased at opening for resale?===========>>No I do not think so UNLESS you buy personal pty and place it in your biz as inventory; your beginning inventory is the recorded cost of inventory at the end of the immediately preceding accounting period, which then carries forward into the start of the next accounting period UNLESS yourr biz is in its first year.

do i subtract cost of CC merchant machine, =====>On SCh C of 1040, you need to depreciate your biz machine as eqmt; aslongas you have equipment used exclusively for your business, you can deduct depreciation expenses. For "useful life" depreciation, you deduct a fraction of the equipment value each year for as long as the equipment is expected to last. I mean assume that the machine is supposed to last 10 years, then you deduct 1/10 of the initial cost each year. Ordinary and necessary costs you incur in running your business can be deducted from your income, which reduces the amount of tax that you will owe

beverages for resale,=====> you can deduct the payments you made for estimate sales and use tax on Sch C of 1040 also.

merchant account fees, etc? ====>yes

my NOL for 2014 is somewhere between 25 and 50k====> You have the option of applying your NOL only to future tax years insteaf od carryng it backward back to 2 years. You can carry the NOL forward for up to 20 years and use it to reduce your taxable income in the future. When you do this, you must attach a statement that includes a computation showing how you figured the NOL deduction.



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