Last Things
Have you already filed your 2017 (or even earlier) tax return(s) and forgot to take advantage of some deductions? Don’t worry—all is not lost! There is a provision in the tax code that allows you to go back and REFILE using an amended return (IRS Form 1040X). For amended returns, you are permitted to go back up to three years from the date the original tax return was due. For example, if the due date of the return was April 15, 2016, you have until April 15, 2019, to file a Form 1040X for 2015.
It's now up to you. I hope you become proactive in handling your tax situation rather than reactive. It's much easier to do things right when you first start out, than it is to go back and straighten things up.
*** END OF TRAINING ***
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Joshua2765
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Sdawson001
Premium
nice training. I had a legal single entity LLC for several years, but for all those years I did not make a profit. I did claim expenses, pay for the state and city business license, submit sales taxes online, and all. But after several years with no profit, my CPA's told me to close down the business, I only had a hobby. So I'm a hobbiest right now until I need to become a business again. Sometimes it can be so confusing when you are trying to do it all legal even.
Joshua2765
Premium
Shirley, did you file a business return in those early years? The IRS allows you to claim a loss for a few years, but here is the general rule:
"The general rule is that if you have not turned a profit in at least three of the prior five years, the IRS will categorize your business as a hobby. This may be extended to a profit in two of the prior seven years in the specific case of horse training, breeding or racing."
Also, how long ago was that? You are able to file an amended return for up to three years after the due date of the original return (File IRS Form 1040X).
Finally, your WA business has nothing to do with those other businesses. You are legitimately operating an internet business to make a profit. Thus, you can, and should, treat it as such. If your CPAs are telling you that you cannot claim expenses for your WA business, I'd look for another CPA.
Anyway, wish you continued success,
Joshua
"The general rule is that if you have not turned a profit in at least three of the prior five years, the IRS will categorize your business as a hobby. This may be extended to a profit in two of the prior seven years in the specific case of horse training, breeding or racing."
Also, how long ago was that? You are able to file an amended return for up to three years after the due date of the original return (File IRS Form 1040X).
Finally, your WA business has nothing to do with those other businesses. You are legitimately operating an internet business to make a profit. Thus, you can, and should, treat it as such. If your CPAs are telling you that you cannot claim expenses for your WA business, I'd look for another CPA.
Anyway, wish you continued success,
Joshua
