- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
As stated earlier by my colleague, there are different types of carryovers and they don't all work the same.
Based on your comments that your expenses were greater than your income, I am assuming that maybe you operated as a Sole Proprietor and that you did DID NOT MARK THE BOX THAT SAYS THAT ALL INVESTMENT IS AT RISK which will result in what you described earlier of not being able to claim th.e deduction. If the above is the case:
-> Your carryforward will expire with the termination of the business.
-> Yes. Schedule C losses do offset other forms of income.
-> You can actually claim ALL the loses in the current tax year if you CHECK THE BOX THAT SAYS THAT ALL INVESTMENT IS AT RISK.
As for the capital gains, if there is any, of selling your home, the taxes are assessed separately. They are referred as Capital Gains Taxes which are taxed at a preferred rate is certain conditions are met.