Visitor I

Business of in 3rd year

I'm a newspaper delivery person and have W-2 Full time job. I have been showing loss on Sch C for last two years and again in 2017 taxes. I know there is a rule see below

 

An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year (or at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses).

 

My issue is that being a newspaper delivery is not a hobby by profession, just trying to make a living.  make around $18K from this job, and off course gas mileage and car repairs adds up. 

 

Can I continue to take loss? I do have W-2 job that helps me with living to IRS can't ask howcome I am making a living

 

Thanks

 

1 Comment
AJ
Member III

Business of in 3rd year

Here is a recommended answer from a similar question:  https://ttlc.intuit.com/questions/2338853-how-many-years-can-i-claim-an-operating-loss-on-my-busines...

 

In addition to finding ways to increase revenue, try to find legitimate ways to decrease your expenses.   If your net profit is under $400, then there is no Schedule SE for self-employment taxes.