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Do Business Expenses Offset Capital Gains Taxes?

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Do Business Expenses Offset Capital Gains Taxes?

Postby ittamar » Tue Oct 03, 2017 8:24 am

NO not directly for this purpose at all because first your business income tax return will have to be correctly completed for this purpose down to your NET profit amount for the tax year.

And the forms 8949 along with the schedule D for the sales of the securites transaction that occurred during the tax year for this purpose.

And at this point in time you will still have unknown answer about owing income taxes for the 2012 tax year during the 2013 tax filing season for this purpose and time in your life. Good Luck.

Schedule C and the Schedule SE along with the 1040 FIT return to correctly fill out and complete your 1040 income tax return for your business operation.

Use the search box at the www.irs.gov website for What is Small Business Filing Season Central?

Small Business Filing Season Central is your one-stop assistance center for filing your business returns. http://www.irs.gov/businesses/small/arti...

Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. http://www.irs.gov/businesses/small/arti...

What Can I Deduct?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

It is important to separate business expenses from the following expenses:

For additional information, refer to the chapter on Cost of Goods Sold, Publication 334, Tax Guide for Small Businesses and the chapter on Inventories, Publication 538, Accounting Periods and Methods.

Capital Expenses

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.

Personal versus Business Expenses

Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal purposes, divide the total cost between the business and personal parts. You can deduct the business part.

The remaining 30% is personal interest and is not deductible. Refer to chapter 4 of Publication 535, Business Expenses, for information on deducting interest and the allocation rules.

Business Use of Your Home

Refer to Home Office Deduction and Publication 587, Business Use of Your Home, for more information.

Business Use of Your Car

Refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses. For a list of current and prior year mileage rates see the Standard Mileage Rates.

Other Types of Business Expenses

This list is not all inclusive of the types of business expenses that you can deduct. For additional information, refer to Publication 535, Business Expenses.

References/Related Topics

Page Last Reviewed or Updated: February 21, 2012

Filing and Paying Your Business Taxes http://www.irs.gov/businesses/small/arti...

The form of business you operate determines what taxes you must pay and how you pay them.

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year.
An employee usually has income tax withheld from his or her pay.

For additional information refer to Publication 583, Starting a Business and Keeping Records.

Estimated tax

Self-Employment Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves.
Your payments of SE tax contribute to your coverage under the social security system.
Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

Generally, you must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.

?If your net earnings from self-employment were $400 or more.

For additional information, refer to Self-Employment Tax.


Hope that you find the above enclosed information useful. 09/06/2012
Posts: 190
Joined: Tue Sep 18, 2012 11:43 am

Do Business Expenses Offset Capital Gains Taxes?

Postby Timo » Wed Oct 04, 2017 3:23 pm

If your business is a sole proprietorship, or for most LLC's, a business loss and capital gain show on the same 1040.
If you have a capital gain but a business loss, yes the loss would offset the gain.

But SPENDING $10000 on your business doesn't mean you have a $10,000 loss on your tax return.
Would need a whole lot more info.
Startup expenses, for example, are amortized across a number of years, not just deducted the first year.
And some purchases must be depreciated, not expensed in one year.
And were you actually even open for business this year, or just getting ready to be?

You'd be wise to have a professional do your taxes at least for the first year you're in business.
It's a lot more complicated than your question sounds like you think it is.
Posts: 38
Joined: Thu Feb 20, 2014 12:26 am

Do Business Expenses Offset Capital Gains Taxes?

Postby Royden » Wed Oct 04, 2017 8:46 pm

you are talking oranges and apples, a business operation is reported on Sch C and brought forward to the appropriate line on the 1040

if you have stock sales you report on Sch D, it is forwarded appropriately to the correct line on the 1040

if the C results in a loss but the D is a gain when you combine the lines #7 thru # 21, the gross is the result of the pluses and minuses

a C loss does is not directly related to the D, but when applied on the 1040, one can have some effect on the other
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Do Business Expenses Offset Capital Gains Taxes?

Postby Waleis » Fri Oct 06, 2017 7:13 pm

Business expenses offset income from the business on your schedule C.
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Joined: Mon Jan 06, 2014 7:33 pm

Do Business Expenses Offset Capital Gains Taxes?

Postby Sunukkuhkau » Sat Oct 07, 2017 6:03 am

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Do Business Expenses Offset Capital Gains Taxes?

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