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Unfortunately, you can only deduct losses in the year that they were sustained.
So, you cannot deduction your 2012 loss in 2013.
However, you can amend your tax return for 2012 to show the loss, and take the benefit of a reduced income in that year.
You can write off the $6,000 loss in 2013.
I'm sorry if you expected otherwise.
Do I need to file other forms in addition to my 1040 and if so what forms. Other than registering the company and paying federal and state payroll taxes, I have not filed any report to IRS. Do I need to file any report on the LLC finantial results or I only need to show the net result on my 1040.
You will show the income and expenses on your 1040 on schedule C
I thought there was a form that one needs to file to elect to report the LCC either as a corp or not. I than I have hard something like that before.
No, that's if you want to be treated as a corporation. There's nothing to file if you do not want to be taxed like a corporation. I would not recommend filing as a corporation because you would not be able to use losses to offset your incoem.
So I only need to file that if I want to be treated as a corp. I do not need to do anything except show the result on my Sch C if I do not need to be taxed as a corp. Right?
That is correct. The LLC is ignored for tax purposes if no election is made.
It's considered a "disregarded entity"
What if the LLC is owned by more than 1 person
Then, it's a partnership which is also disregarded. You would file form 1065 and from that a K-1 would be generated, which would flow through to your personal income tax return as well.
Is there a way I can select who answers my tax question when next I contact Just Answers?
If you would like to request me again, I can give you my personal link
Ok that'll be fine.
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You're welcome. Is there anything else I can assist you with tonight?
I think that should be all. I hope my business grows then I'll need more help in future.
I hope your business grows as well!
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Thank you. You have really saved me a lot of time I would have spent researching the information you gave me today. Excellent response.