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Subject Author Date
Failed business losses allanca@gmail.com 01-21-2008
Posted by allanca@gmail.com on January 21, 2008, 5:34 pm
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 I did a significant amount of freelance work for a startup business
that failed before they were able to pay me. Is there an way to deduct
that loss from my self-employment taxes?

Thanks
-Allan

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Posted by Harlan Lunsford on January 21, 2008, 6:18 pm
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 allanca@gmail.com wrote:
> I did a significant amount of freelance work for a startup business
> that failed before they were able to pay me. Is there an way to deduct
> that loss from my self-employment taxes?
>
> Thanks
> -Allan
>
Just don't worry about it. If they didn't pay you, you have no income
to report, i.e there IS no tax loss.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by rlsusenet@NOSPAMPUHLEEZschnapp on January 22, 2008, 1:42 am
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Harlan Lunsford wrote:
> allanca@gmail.com wrote:
>> I did a significant amount of freelance work for a startup business
>> that failed before they were able to pay me. Is there an way to deduct
>> that loss from my self-employment taxes?
>>
>> Thanks
>> -Allan
>>
> Just don't worry about it. If they didn't pay you, you have no income
> to report, i.e there IS no tax loss.
>
> ChEAr$,
> Harlan Lunsford, EA n LA

Right -- but of course, he can deduct his business expenses.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Benjamin Yazersky CPA on January 22, 2008, 7:53 am
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> I did a significant amount of freelance work for a startup business
> that failed before they were able to pay me. Is there an way to deduct
> that loss from my self-employment taxes?
>
> Thanks
> -Allan
>
> --


If you never reported the income, you have no loss to deduct.
However, you can still deduct your expenses.


___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----



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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
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<< >>
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