7/5 Job A is completely unrelated to Job B. Job A is my main job, and
job B is what I do for fun but can't make a living out of [yet].
Let's say job A provides me with 99% of my income. I just invested
$20,000 for job B which currently makes only 1% of my income,
but I hope to recuperate most of that in maybe 1-2 years. Is there
any way deduct my tax rate that I make from job A using expenses
from job B?
\_ You can carry forward your Job B losses for 3-10 years.
\_ why the nebulous 3-10 years? What determines that?
\_ So that you look it up or talk to a tax advisor. motd is good
to point you in the right direction, but you really shouldn't
make tax decisions based on it.
\_ you can also incorporate Job B and be a sole shareholder.
I recommend Nolo Press.
\_ I recommend you do not incorporate unless you like lots of
expenses like taxes. For example a C corporation in California
pays a minimum of $800 in franchise taxes. This is true if
you do business in California, even if you incorporated in
another state and even if you operate at a loss. I setup a
corporation "just to learn how" for a hobby I did and it
turned into a gigantic fustercluck. I am working to have it
dissolved now. Please make it go away.
\_ He wouldn't do a C Corp, he'd probably do an S Corp, which
avoids double taxation and other issues with S Corps. But
the Nolo books explain all of this.
\_ S Corps still pay the greater of ($800 or 1.5% of
net income) in franchise tax and are still double
taxed in California. Do not incorporate unless you
like paying money to lawyers, accountants, and the
government and the laws change seemingly each year which
means you will spend a lot of time figuring things out and
ignorance is not accepted as an excuse. It makes a lot of
sense to incorporate in some instances, but for a hobby I
wouldn't do it.
\_ wrong.
\_ 100% correct. Please to be highlighting the part
you think is wrong so that I may educate you. |
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