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I had a business as a sole proprietorship for about 5 years and had some years of profit and some of loss. In 2019, I paid the franchise tax and did some advertising,
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I had a business as a sole proprietorship for about 5 years and had some years of profit and some of loss. In 2019, I paid the franchise tax and did some advertising,
If you had ordinary and necessary business expenses in 2019 for an ongoing business, you should claim them.
As long as you were in business to make a profit, your expenses are deductible.
Showing a loss doesn't make the business a hobby, and not reporting losses doesn't make it a business engaged in for profit.
IRC § 183(d) provides a presumption that an activity is engaged in for profit if the activity is profitable for 3 years of a consecutive 5 year period or 2 years of a consecutive 7 year period for activities that consist of breeding, showing, training, or racing horses.
The Internal Revenue Service allows you to take a tax deduction for legitimate losses incurred in the operation of your business.
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I had a business as a sole proprietorship for about 5 years and had some years of profit and some of loss. In 2019, I paid the franchise tax and did some advertising,
Thanks. I don't remember how many years of profit and loss I had. But let's say that this would make it the third out of five years that I lost money, however I also already took steps to close it since it wasn't profitable . . .
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