Publication 334 |
2001 Tax Year |
Introduction
After figuring your business income
and expenses, you are ready to
figure the net profit or net loss from your business. You do this by
subtracting business expenses from business income. If your expenses
are less than your income, the difference is net profit and becomes
part of your income on page 1 of Form 1040. If your expenses are more
than your income, the difference is a net loss. You usually can deduct
it from gross income on page 1 of Form 1040. But in some situations
your loss is limited. This chapter briefly explains two of those
situations. Other situations that may limit your loss are explained in
the instructions for line G and line 32 of Schedule C.
If you have more than one business, you must figure your net profit
or loss for each business on a separate Schedule C.
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