Finance Questions? Ask a Financial Expert for Answers ASAP
Dear Friend, Hello and welcome...
Kindly be online for a while as I prepare your reply....
For the services that you have sold, you will have sales tax liability.
However, since your expenses where more than the sales, you will have Net Operating Loss and you will have no tax burden. You will have sales tax burden on the sales you made, and this will increase your Net Operating Loss. You will have no other tax burden besides this.
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So provided I already paid the sales tax, which I did monthly, and provided I am calculating things right, showing a net operating loss will NOT leave me with any taxes owed on the revenues my store had...?
Also. An operating loss can offset other revenues from a second business yes? If I lost $55k on my boutique and made $85k in another company, it offsets it and leaves me with a tax burden online on the difference - $30k
Yes, the loss on business -1 will offset income from other sources including business - 2. ....This will reduce your taxable income and reduce your regular income taxes.
However, the loss on business -1 will NOT offset self employment taxes that are due on the profits from business -2.
Ok. You answered my questions. Thanks a bunch! :-)