On Feb 17, 7:59 pm, "D. Stussy" <s...[at]bde-arc.ampr.org> wrote:

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You're probably right, but the IRS is not going to challenge you if
you pay more tax. Now if you failed to take deductions and those
deductions resulted you in paying less tax or getting more back, like
when a higher income gives you a higher EIC, then that's a problem.

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<removeps-groups[at]yahoo.com> wrote in message
news:c6968b92-6e03-486e-9e1a-7252ab86e873[at]m29g2000prd.googlegroups.com...
- quote -

I disagree. In this case, "failing to take the deduction?" would be a
failing to report the activity - and that's a strong indication of tax
fraud. Furthermore, it is NOT optional to report self-employed business
expenses. I believe you're confusing the ELECTION permitted to itemize vs.
claiming the standard deduction as extendible to this situation - it is
NOT.

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On Feb 17, 6:14 am, kupc...[at]hotmail.com wrote:

- quote -

It's not required to take a deduction. There's a possibility, very
remote in my opinion, that the IRS will come to learn that you had
$1,100 in receipts. They make send you a CP-2000 asking for regular
tax and self-employment tax on this $1,100, so then you would just
write back and tell them that your expenses were more than your
receipts -- which is kind of the Schedule C.

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On Feb 16, 5:52*pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:
- quote -

It seems that I did not describe the issue accurately enough.

The situation that I have is with over $100,000 in AGI and a scheule C
with gross reciepts of $1,100. Net profits show a loss of $50.

The question is "since profit is less than $400, is the taxpayer
REQUIRED to file any of the schedule information for the business". I
reconize that the loss will reduce AGI, but with such a small loss,
the effort may not be worth, it if not required.

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<kupchik[at]hotmail.com> wrote
- quote -



Yes.



- quote -



Filing the return is how they know that you lost money.

Besides, it starts the clock ticking.





--
Paul Thomas, CPA
Watkinsville, Georgia

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On Feb 16, 2:23 pm, kupc...[at]hotmail.com wrote:

- quote -

Is Schedule C your only source of income. If so, you only have to
file if your net earnings are $400 or more. See chart C of the 1040
instructions on page 9. But you might want to file in order to
generate an NOL (net operating loss), which you can carryback to 2 or
so previous years, and/or carryforward to the next 20 or so years.

If you have a Schedule C and also a W2, then you should file the
Schedule C as it will reduce your AGI from the W2.

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

Do you have to file a schedule C if you have gross receipts of over
$1,000, but your net earning for this activity are a loss?

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >