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Amanda Jaggers

As Per Amanda Jaggers, if you just started a business, you may be wondering how taking a loss in the first year will affect your taxes. If your business loses money in its first year, you may be able to get a tax break. These losses are called "net operating losses," and you may be able to deduct them from your own taxes. During the first year of your business, if you have a lot of costs, you can also take a deduction for a loss.

Yes, is the short answer. But the long answer depends on how your business is set up, how much money you put into it, and how much risk you are willing to take. You should also think about how much money your family makes. You can also subtract a business loss when figuring out how much of your income is taxed. But it's important to know what can't be done with this choice. If you want to know more about this question, you should talk to an accountant.

In Amanda Jaggers’s opinion, you can use a loss to offset other income on your personal tax return. But if you are a passive investor, you may not lose as much. But most people who run small businesses will never go over this limit. This limit applies to single taxpayers with losses over $262,000 and married couples with losses over $524,000. When you file your tax return, you can use a loss to reduce the amount of taxable income from a previous year.

A business's first year may also count as a deductible startup cost. It's important to remember that you can deduct the loss if it's more than your total income for the year. You can also subtract the loss from other income and use it to lower your tax bill for the current year. If you've already paid too much in taxes, you can use this deduction to get your money back.

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