topic Re: Operating at a loss in Self employed

Operating at a loss

ktax2 — Wed, 27 Oct 2021 19:15:37 GMT

I've been self-employed for thirty-plus years and have always operated at a profit until 2021, due to setbacks from the pandemic. This year I will have more business expenses than income to report. Is this something I should be concerned about? I would still like to deduct the expenses, and not have my business downgraded to a hobby, as it is my sole source of income (via different 1099 jobs). Thanks!

Re: Operating at a loss

jobejobie — Wed, 27 Oct 2021 19:17:47 GMT

I worry about this as well! The pandemic screwed business and now we are to carry on as if nothing set us back. some of us are still recovering. I had a loss both years of 2020 and also this year was down.

Re: Operating at a loss

HollyP — Thu, 28 Oct 2021 00:01:39 GMT

@ktax2 and @jobejobie please see my answer here. Also, check out Stimulus 2021: Self-Employed Tax Credits and Social Security Tax Deferrals Available During COVID-19 you may still qualify for some help in your business this year.