- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
This is the 3rd year for my business. I lost money in the 1st 2 years of business. Do I need to make a profit in my 3rd year?
Topics:
posted
June 3, 2019
4:36 PM
last updated
June 03, 2019
4:36 PM
Connect with an expert
Do you have an Intuit account?
You'll need to sign in or create an account to connect with an expert.
1 Best answer
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
This is the 3rd year for my business. I lost money in the 1st 2 years of business. Do I need to make a profit in my 3rd year?
A business must have intent to profit and have a reasonable potential to do so or the IRS could claim your business a hobby and retract some or all your business deductions. Creating a profit 3 out of 5 years is a guideline not a mandate.
June 3, 2019
4:36 PM
1 Reply
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
This is the 3rd year for my business. I lost money in the 1st 2 years of business. Do I need to make a profit in my 3rd year?
A business must have intent to profit and have a reasonable potential to do so or the IRS could claim your business a hobby and retract some or all your business deductions. Creating a profit 3 out of 5 years is a guideline not a mandate.
June 3, 2019
4:36 PM
Still have questions?
Make a post