Should I claim a loss on my home-based business? - home based spa
In the last 3 years I was a consultant for the sale of products through parties Wellness Spa. The first two years has led to a loss (after deductions). I have documentation to support my application (mileage, business cards, websites, brochures, etc.). My concern is that I read that if you ask a loss of 3 / 5 years, the IRS considers the operation of a hobby shop. 2006 was my year 3, and while I was still a few sales were very weak when I was pregnant and not actively selling. I am still in active status of the company was present as products for personal use, for which no money. My main question is, should I go as a consultant for the company to disclose, because this business of stopping from home? . Or call the months to sell the active products?
Friday, January 15, 2010
Home Based Spa Should I Claim A Loss On My Home-based Business?
2 comments:
They work in a misunderstanding about the rules, in fact, the reverse playback. The rules essentially say that if you can show a profit after a number of years that you should have a legitimate operation, for-profit companies. This means that if you do not enjoy, which is allegedly led to a "sham" for business or pleasure.
If you do all the things businesses do (to be registered with the state to obtain an EIN, Federal, a local business license, bank accounts of enterprises, the financial statements of companies, a file to difficulties in selling your product, etc, etc .), then you can create an advantage for the companies and their losses will be accepted, regardless of its duration.
If this is not the case, the capitalists will not invest their money in the market.
I think we can declare a loss of 5 years before they say it is a hobby-business. I do not know that you can count the years before, so do not ask you from too.
Post a Comment