Discussion:Schedule C Losses
From TaxAlmanac
| Revision as of 01:20, 21 March 2008 Zimmermancpa (Talk | contribs) (The Schedule C c) ← Previous diff |
Revision as of 01:25, 21 March 2008 PostingFromWork (Talk | contribs) (Michaelstar, you) Next diff → |
||
| Line 17: | Line 17: | ||
| {{ForumReplyPost|UserID=Zimmermancpa|Date=21 March 2008|Text=The Schedule C can not be a hobby and none of the expenses could be capiatlized; it was her final year of business as well. }} | {{ForumReplyPost|UserID=Zimmermancpa|Date=21 March 2008|Text=The Schedule C can not be a hobby and none of the expenses could be capiatlized; it was her final year of business as well. }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=PostingFromWork|Date=21 March 2008|Text=Michaelstar, you are dead wrong about that. | ||
| + | |||
| + | §32(e)(2) provides that net SE earnings for the EIC, is defined by §1402(a). | ||
| + | |||
| + | The relevent part of §1402(a) reads: | ||
| + | ''" The term "net earnings from self-employment" means the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business..."'' | ||
| + | |||
| + | As you see, there is no choice in the matter other then those provided by election, i.e. §179, startup costs, etc.}} | ||
Revision as of 01:25, 21 March 2008
Discussion Forum Index --> Tax Questions --> Schedule C Losses
Zimmermancpa (talk|edits) said: | 21 March 2008 |
| Is a taxpayer required to file a Schedule C if the business for profit shows a loss? I have a client who would qualify for the EIC if it weren't for a Schedule C loss offsetting all her W-2 wages. | |
Michaelstar (talk|edits) said: | 21 March 2008 |
| The t/p is required to file the Schedule C if there are receipts for the business. The t/p is not required to deduct all of the expenses and show a loss. The Schedule C can have a net income of zero. | |
RoyDaleOne (talk|edits) said: | 21 March 2008 |
| I would disagree in that if an allowable deduction would change a tax benefit, mostly the taxpayer would be required to take such a deduction.
Could the Schedule C be classified as a "hobby"? Could you elect to capitalize some of the deductions? Do the required receipts and records exist for all of the deductions, i.e. car expenses? Some of my thoughts. | |
Zimmermancpa (talk|edits) said: | 21 March 2008 |
| The Schedule C can not be a hobby and none of the expenses could be capiatlized; it was her final year of business as well. | |
PostingFromWork (talk|edits) said: | 21 March 2008 |
| Michaelstar, you are dead wrong about that.
§32(e)(2) provides that net SE earnings for the EIC, is defined by §1402(a). The relevent part of §1402(a) reads: " The term "net earnings from self-employment" means the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business..." As you see, there is no choice in the matter other then those provided by election, i.e. §179, startup costs, etc. | |
