I think I understand what you're saying, but not sure.
The $650 income won't hit my account until 2024.
The $1,500 expenses were incurred Dec. 2023.
So, my NOL for 2023 is $1,500 right?
But you're saying carrying over that NOL to 2024 won't reduce
my SE taxes, only income taxes. I won't incur income taxes in 2024 unless
I make more than the standard deduction (which was $13,850 in 2023).
Do I have that right?
If I do have all that right, then that means it is MUCH better to have income and expenses occur in the same year, as that way I can just subtract the business expenses from the gross income before I pay
any SE tax, right?
For example, say in 2024 I made $5,000 gross SE income but have expenses of $3,000 = $2,000 net income to pay SE tax on. Right?
Compare that to $3,000 expenses in 2024 with $0 income and $5,000 income in 2025 with $0 expenses =
$5,000 net income for SE taxes in 2025 (because NOL from 2024 doesn't reduce SE taxes).
Is that right?
