AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 12/20/2007 Subject: Newly established sole proprietorship
Question I am a resident of CA. I normally file Married/Joint return. I started a sole proprietorship this year and took a net loss of approx. $17,000. Is there a way to recover any of this loss through the income tax filing process? If so, what tax forms do I need to file in order to do so? Is this a do it yourself thing for a tax novice (via a TurboTax like program) or should I seek professional tax preperation help?
Answer You report your loss using Schedule C, which is part of your Form 1040 filing. It is an attachment. If you or your husband have other income, this loss will offset that income and can help generate a refund from withholding on your W-2 or possibly earned income credit.
It would not hurt to see a professional - but at a minimum - use a Tax program.
