Claiming a loss each year...
- Thread starter are12
- Start date
Hi Frank,
Is it true that if you claim a loss each year, when you go to retire you will get little or nothing from Social Security?
Thanks for all the advice you give here.
Ain't No Feelin' Like Six Wheelin'
Arlene and Jim
I am soory to tell you that that is the truth, and you cannot have a loss for every year. which means that if you are in business for 5 years, you must show a profit 2 of those 5, or there is a very good possibility of you being audited, it would not make any difference if it was only $5.00 the main thing here is a Profit..
When you make a profit you will see a from SE, Self employment, This is what your Social Security is based on. You can check with the SS office to see if you already qualify, You need I think 43 points. IF you already have them, you have enough to collect, If you dont, You know where you stand. If you are a team as I see only one of you would get the points. not the other, unless who ever your are leased to will split the 1099 between you so that there is a possibility of paying in.
Frank
Is it true that if you claim a loss each year, when you go to retire you will get little or nothing from Social Security?
Thanks for all the advice you give here.
Ain't No Feelin' Like Six Wheelin'
Arlene and Jim
I am soory to tell you that that is the truth, and you cannot have a loss for every year. which means that if you are in business for 5 years, you must show a profit 2 of those 5, or there is a very good possibility of you being audited, it would not make any difference if it was only $5.00 the main thing here is a Profit..
When you make a profit you will see a from SE, Self employment, This is what your Social Security is based on. You can check with the SS office to see if you already qualify, You need I think 43 points. IF you already have them, you have enough to collect, If you dont, You know where you stand. If you are a team as I see only one of you would get the points. not the other, unless who ever your are leased to will split the 1099 between you so that there is a possibility of paying in.
Frank
are12
Expert Expediter
Thanks for the info, Frank.
My husband and I pay taxes every year (quarterly) and we have been told by numerous drivers that we are crazy for doing this. They have all claimed that they show a loss or show very little income so their taxes are zero to none.
We questioned our CPA and he told us exactly what you did.
The only reason I posted this, was not becasuse I do not trust our CPA, but I am hoping the people that are claiming they pay little or none in taxes will read this. I would hate to see someone have nothing at the time of retirement.
Once again, thanks for all your help and advice.
My husband and I pay taxes every year (quarterly) and we have been told by numerous drivers that we are crazy for doing this. They have all claimed that they show a loss or show very little income so their taxes are zero to none.
We questioned our CPA and he told us exactly what you did.
The only reason I posted this, was not becasuse I do not trust our CPA, but I am hoping the people that are claiming they pay little or none in taxes will read this. I would hate to see someone have nothing at the time of retirement.
Once again, thanks for all your help and advice.
If anyone is just counting on Social Security income to retire on you are going to be living in a box with a tin can for handouts. Start a retirement account and take control of your retirement. The government is not going to take care of you in your later years. All of us that are trying to cut back on our taxes really need a good retirement fund that you deposit to every month.
Gotta put my 2 cents worth in, It seems that the Social Security might run out a lot faster since Congress passed that "ilegal Aliens" can recieve SS Benefits even though they did not contribute to it.
AINT THAT A KICK IN THE YOU KNOW WHERE!!!! AND YOU KNOW ALL THEY HAVE TO DO IS COMEACROSS THE LINE AND IMMEDIATELY THEY GET EVERYTHING WE CAN'T
A. Welfare
B. Medicade
C. Imediate housing for little or nothing
D. Loans to start a business, No federal tax to pay for 7 years, and then they turn it over to a family member and its 7 more years NO TAXES PAID, but if we need something we cannot get it because our credit Score is either two low or our credit report doesn't surfice the critiera to get the credit, House, Car, a credit card, or anything else. because were citizens!!!!!!!.
E. Lets say were on SS now, and that is all we have,
We go to the grocery store, buy generic, off brand, or what ever is the least expensive. Cause this is all we can afford to make our checks stretch. but the "illegal Aliens" buy the name brands in all the store. because they get the money from the government free!!!!!
Thats all I have to say.
Frank
FRANK
AINT THAT A KICK IN THE YOU KNOW WHERE!!!! AND YOU KNOW ALL THEY HAVE TO DO IS COMEACROSS THE LINE AND IMMEDIATELY THEY GET EVERYTHING WE CAN'T
A. Welfare
B. Medicade
C. Imediate housing for little or nothing
D. Loans to start a business, No federal tax to pay for 7 years, and then they turn it over to a family member and its 7 more years NO TAXES PAID, but if we need something we cannot get it because our credit Score is either two low or our credit report doesn't surfice the critiera to get the credit, House, Car, a credit card, or anything else. because were citizens!!!!!!!.
E. Lets say were on SS now, and that is all we have,
We go to the grocery store, buy generic, off brand, or what ever is the least expensive. Cause this is all we can afford to make our checks stretch. but the "illegal Aliens" buy the name brands in all the store. because they get the money from the government free!!!!!
Thats all I have to say.
Frank
FRANK
aquawarrior7
Expert Expediter
So how do we disown our country and come back as "illegal"? HAHA
I would so love a free business and a fresh start and all. SO is there a best choice of countries to come from(Asia area?) if I am mexican I would have to work harder than I do now lol
I would so love a free business and a fresh start and all. SO is there a best choice of countries to come from(Asia area?) if I am mexican I would have to work harder than I do now lol
jasonsprouse
Expert Expediter
This is an old thread but I wanted to put in my 2 cents.
Social Security isn't a good reason to report your income. You'd never get as much money from Social Security as you paid in taxes.
However - being charged with income tax evasion and the accompanying jail time is a good reason.
Social Security isn't a good reason to report your income. You'd never get as much money from Social Security as you paid in taxes.
However - being charged with income tax evasion and the accompanying jail time is a good reason.