How do you report your business gain or loss?
February 7, 2012 7:58pm CST
I just done my tax return, and something I learn that I should report on my tax income next year. Since I started my own business last year, and it wasn't a big business at all. It was more like a small home business, start from garage kind of thing. The supplies I purchases were from online source, and I only kept the receipt if I have to. And the income I earned just from selling them online, it is traceable only through wire transfer, or either from paypal. The question is, how should I report them on my tax return, since I can't afford my own personal accountant to do the bookkeeping. I only have receipt of purchases, and bank statement of money gain. Do I have to make my own income statement, or how should I start do my own accounting so I can make the report next year?
• United States
8 Feb 12
If you are in the USA you will need schedule C. Follow instructions and you will be OK. You are going to have to fill out the long 1040 form where you place the results from your schedule C. You might also need to get the self employment tax sheet if your business had a profit after expenses. It's all a bit of work but one can figure it all out reading the forms. Check the irs webpage. They have a number you can call to ask questions.
8 Feb 12
Tax officials can be helpful. You come to the tax office and explain. I think there is a guidance from the tax office how you would have to report your financial statement. Preparation of financial statements varies among individuals, depending on the size of your business.