![The reality of trying to escape the tax man. [843x811 - 120KB]](https://pic8.co/sh/cfAKoG.jpg){kind=link}
If it isn’t making any money what are you writing off? W2 income?
You’re writing off losses incurred by your side business.
I’ve oversimplified everything, and to really use this, you should work with an accountant.
https://www.curleyrothman.com/blog/how-will-your-business-be-taxed-on-profits
Right but isn’t there a limit to this? I’ve heard the kike IRS can declare your side biz as a hobby and ask for all the taxes at once.
You can declare as much loss as possible, but it will only offset the income taxes. They won’t give you more than you put in; at best you just don’t put any in.
Right but the thing they don’t mention is if you run a non profitable business for a few years the IRS can audit you and force you to pay the taxes back. They’ll call your business a “hobby” and take back all those deductions.
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