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    Filing a tax return with a loss: pay as you go

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    When you are filing your business return at a loss for three years, would you still be paying as you go?

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    Solution Preview

    The normal definition of a 'business return' means a corporate return. In the case of a corporation with a loss, there would be no payment of income tax required because there would be no taxable income to compute income tax on.

    If you mean an unincorporated business filing on a Schedule C as part of an individual's income tax return, the answer would be different. Any loss generated from a small ...

    Solution Summary

    This 302 word solution explains the answer in terms of the type of entity reporting a loss including the effects of combining losses with other income within the tax return.