Timeline for Can the expense of one sole proprietorship be written off against the profit of another
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Mar 1, 2021 at 18:56 | comment | added | Orange Coast- reinstate Monica | Changed my answer to explain the important 'active' and 'passive' aspects of your individual income. | |
| Mar 1, 2021 at 18:52 | history | edited | Orange Coast- reinstate Monica | CC BY-SA 4.0 |
added explanation of passive and active income
|
| Mar 1, 2021 at 17:44 | comment | added | Orange Coast- reinstate Monica | You can't simply use Schedule C for landlord income or investment income; the government doesn't want individuals running all their income through Schedule C. From the Schedule C Instructions: "Rental real estate activity. Unless you are a qualifying real estate professional, a rental real estate activity is a passive activity, even if you materially participated in the activity. If you have a loss, you may need to file Form 8582 to apply a limitation that may reduce your loss. See the Instructions for Form 8582." irs.gov/instructions/i1040sc#idm140094050798448 | |
| Feb 28, 2021 at 21:23 | comment | added | DotNetRussell | Is it dollar for dollar? Like I make one dollar in my rentals and I have one dollar of expenses in the other business, they cancel out and the taxable income is zero? | |
| Feb 28, 2021 at 21:22 | vote | accept | DotNetRussell | ||
| Feb 28, 2021 at 21:21 | comment | added | DotNetRussell | Okay cool so that means that the profits are taxed and the losses are recorded and at the end of the day when it all passes through to me they are combined to produce one final taxable amount? | |
| Feb 28, 2021 at 20:58 | history | answered | Orange Coast- reinstate Monica | CC BY-SA 4.0 |