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Deductions & credits
Many valid businesses can show a loss every single year due to various factors like buying assets or inventory on credit, taking out loans, the rate of depreciation among other items. So if you are running a business and trying to make a profit but your numbers show a "paper loss" then you don't have to worry. Keep excellant records of all income and expensed in case of an audit.
Read up on what the IRS says on this matter : https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax...
‎September 22, 2022
5:46 AM
943 Views