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First of all - there is No dollar limit for business losses.
However there are several issues to consider...
First of all - we need to be clear that the business has been started. That is important because if the business is not started yet - all expenses are classified as start-up expenses and must be capitalized.
The business is considered as started when you have a product or service for sale. Thus - it is very important to determine the starting date for your business.
Next issue to consider - if you have other taxable income? If yes - you may use business losses to offset other taxable income - for instance wages.
If however your net income is negative - you have NOL - net operating loss - and NOL may be used for other tax years.
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