Are you a Business Owner?

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Are you a Business Owner?

Category : Blog , sccm





Business owners can generally deduct losses on their tax returns. But the activity must show a profit motive by operating in a businesslike manner. The U.S. Tax Court denied loss deductions to one beauty consultant due to a lack of a profit motive. She had no financial statements or records of time spent on the activity. She also had no expertise in the industry and appeared motivated in part by a discount she received on products she bought for herself. And her losses included travel expenses that appeared to be personal, not business-related. (TC Memo 2018-116)


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