How do I write off my defunct business as a tax loss?
February 27, 2006 11:57 AM Subscribe
How do I write off my defunct business partnership on my taxes? I ended a 2 year self employment partnership (incorporated LLC) August of this year, walking away with around $8k in personally liable loans, as well as racking up another $5K after my car was repossessed.
I want to know how best to claim this loss on my taxes.
posted by daHIFI to Work & Money (4 answers total)
My partner and I took a minimal salary from the business that year, doing everything we could to keep our retail computer store afloat. We were not able to pay an accountant near the end and never filed the K1 form at end of year. I'd like to go ahead and fill out my taxes using figures that would go on the K1, as I have the numbers in Quickbooks.
Since my new job has a good salary, I've had quite a bit taken out for takes this year, more than I took home from the store this year. I'd get back $1700 this year without the business loss, but I could get back the full $2600 deducted from my paycheck with the business loss included.
I'm also aware that I can claim the rest of the loss as I pay it back next year as well, right? I expect to have over $12K taken out in taxes in 2006