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Losses and Taxable Income

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Sara owns a sole proprietorship, and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the two owners?

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The following posting helps with problems involving losses and taxable income.

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Because Sara is a sole proprietor, she will NOT be taxed separtately from the business from the losses (or income) filed on the Schedule C. Because Phil is a shareholder of a ...

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Keonda Grant-Taylor, MBA
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