Expert Council Q&A for 2-15-24 – Epi-3448 — 9 Comments

  1. At min 30, Jack says that business losses greater than total business deductions can be written off your job income.
    I have been self employed and doing my own complex taxes for 25 years, and I don’t think this is correct.
    The business income form, sch c, is separate from employee income.
    I can’t see how you would even make this extra deduction, given current tax forms.

    • It isn’t a direct thing like this goes against this, but it is.

      If a business has a loss, you LOST money, that reduces gross income. There is nothing complicated about that nor is it incorrect.

      It would be like saying a capital loss on a trade doesn’t reduce your taxes just because there isn’t a line item on the form that says to directly apportion it against your W2 directly.

      Now the business needs REVENUE for this to apply. But 10K the number here is plenty. Yes it is a schedule C but that reduces taxable income. If your CPA can’t explain this, get a new one.

  2. Jack, you are totally correct and I should have known this.
    Sch C is business income or loss, and clearly a business loss is just a negative number 🙁

    • Yea but I get where you were coming from. I made it sound like it was a direct deduction but it is a “final deduction” I guess is a more accurate way to look at it. The W2 income is what it is, reported as it is, the business loss comes off at the end.

  3. Could I bother you for the website that the living free in Tennessee lady mentioned regarding tax advice news letter for entrepreneurs.
    I’ve played it back several times, but can’t seem to find anything when I search what I think she’s saying.

  4. Hi Jack,
    Nicole mentions to sign up for Mathews email. But I couldn’t make out the information to subscribe.
    Thank you.

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