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Out of curiosity, is it necessary to continue reporting expenses beyond the annual income, for tax reasons? Or is it okay to stop once the expense amount is equal to or more than income amount?

For example, if my income was 20000 for the tax year, and I purchased a company car for 21000. Do I still need to report gas expenses, meals, travel, etc? is there any benefit to doing so? is it required? If I keep adding expenses, assume I will end up with 28000 expenses and 20000 income - either way I am at a net loss..

  • Where do you live? Tax questions require a jurisdiction. – Grade 'Eh' Bacon Apr 3 at 13:49
  • I live in the state of Florida – AnchovyLegend Apr 3 at 14:00
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It depends on the tax laws in your jurisdiction and your company type - in many cases accumulated corporate losses can be applied in future years against earnings. There may also be specific tax credits if the losses are incurred in some type of government-favored activity such as R&D.

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