Schedule C
- The Purpose of Schedule C
- Schedule C Expenses
- Deducting a Net Loss Reported on Schedule C
- Preparing Schedule C
- Business Deductions Claimed on Form 1040 Instead of Schedule C
- Closing a Sole Proprietorship
More Tax Topics
- Business Structures
- Start-up Costs
- Depreciation
- Car Expenses
- Home Office Deduction
- Travel Expenses
- Hiring Workers
- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
Quick Links
Hot Topics
Need Some Deductions for 2011?
Don't overlook these!
Updated for 2011
Deducting a Net Loss Reported on Schedule C
Loss Reported on Schedule C Loss
Ordinary Loss:
In tax lingo, a net loss from business is an ordinary loss.
An ordinary loss is fully (100%) deductible against any other items of income you report on Form 1040 (e.g., wages for yourself or a spouse, interest, dividends, etc.).
Capital Loss:
In contrast, a capital loss, which results from the sale of capital assets, such as stocks and bonds, is only deductible up to a maximum of $3,000 per year.
Any excess capital loss over $3,000 must be carried over to the next tax year and added to any other capital losses for that year (if any).
Again, only up to $3,000 is deductible even when adding prior year capital losses to current year capital losses.
Related Links
- The Purpose of Schedule C
- Who Must File Schedule C?
- More Than One Business
- List of Schedule C Expenses
- Explanation of Certain Schedule C Expenses
- Schedule C-Page 1, Part I: Income
- Schedule C-Page 1, Part II: Expenses
- Deducting the Home Office Deduction on Schedule C
- Schedule C-Page 2, Part III: Cost of Goods Sold
- Part IV: Information on Your Vehicle
- Part V: Other Expenses
- Form 1040 Deductions
- Closing Your Sole Proprietorship
- Reopening Your Business in a Later Year
- Closing Your Business When You Have Employees
Copyright © 2008-2012 Larry Villano. All rights reserved.