Have a Tax Question? Ask a Tax Expert
Looking forward, then, is there a better business formation to minimize taxes? It seems silly that Dec/Jan forms a kind of magic point in the road where I am unable to carry operating income forward.
Sorry, I wasn't clear. Is there a better formation of my business that would allow me to carry income forward into a new year for operating expenses? I'm looking for the best setup from a tax perspective.
I think I signed up for the ongoing deal, so I think I can continue to ask questions. Let me know if not.
My understanding from your response is that I can count expenses in Jan/Feb on my 2012 taxes. (Perhaps I misunderstood this.) This should work fine since I'm just getting started and am not dealing with a lot of $$$ right now. However, I need to know how to handle this from an accounting and tax reporting standpoint. I use Quicken Business for record keeping and so far have been keeping a simple ledger, breaking different income and expense out using categories. Obviously, anything paid out in Jan/Feb will show for 2013. Any ideas?