And because of losses in the US, they paid no taxes for 2009.

"GE had plenty of earnings last year — just not in the United States. For tax purposes, the company’s U.S. operations lost 8 million, while its international businesses netted a .8 billion profit.

That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a "tax benefit" of .1 billion back into its reported earnings."

http://money.cnn.com/2010/04/16/news/companies/ge_7000_tax_returns/index.htm?cnn=yes&hpt=T2

Regarding the GE Bailout: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/28/AR2009062802955.html?hpid=topnews&sid=ST2009062803183

Seeking help on this scenario. Have HELOC on the house we are living in. We borrow money on the HELOC to build another house and move into the new house. Turn the old one with the HELOC into a rental property. I am a realtor and actively manage this rental property as a full time professional. As part of my active business, I can deduct any losses that I have on the rental property – which are mortgage interest and property taxes minus rental income. Now the question is can I deduct the HELOC interest that was used for building my current primary home? What happens I pay off some of this HELOC debt and draw again for some other uses later on. Which means it is like an account where I can borrow and pay off – with interest deduction. Greatly appreciate any thoughts.
I believe when we made the house a rental there was a 0K HELOC and it was further increased to 0K. After that I paid off some, reduced to 0K.
All the initial 0K draw on HELOC was used for the new home construction.

I work full time out of state for a company, in which I have to provide my own internet. I do not have enough to itemize my deductions on a schedule A, so I am not able to include this expense in there. I do however have freelance income and loss that I fill in on a schedule c-ez. Is is OK to include my internet bill that is used primarily for my full time job in my itemized losses for my freelance job? And if so, I read somewhere if you have w-2 income, you cannot claim more than 2% of your income in business expenses, would this apply?

I have had a direct sales business/hobby for the past 5 years. The first year I had it, I claimed the income and expenses as a business on a schedule C and claimed a loss (I was expecting to run it as a business). The next year, I realized I was spending more money than I was making and claimed it on my personal taxes as misc income (not for profit) and equal amount losses (IRSmaximum) as deductions and have now done this for the past 3 years. This past year, I have been working harder at making it a more "for-profit" buisness. I feel I should be doing a Schedule C, but will this be a red flag for the IRS? My husband also has a hobby on the side that we also listed as misc income with equal losses on our 1040 but he is making more money as well (he received a 1099-misc with income in box 7). How will this look to the IRS, if we now have 2 schedule C’s for businesses we were only claiming as hobbies for the past 3 years?

Thank you in advance for your advice!
Yes, looking at things now, I probably should have keeped a schedule C (I didn’t realized I could extend the loss to profit years), unfortunately it is too late . No, I do not keep an inventory for my direct sales.

Here is my idea, i want to set up a tax shelter to avoid paying income taxes to the IRS. What I would like to do is incorporate a LLC on piece of property and have the property be a agricultural business that losses money everyyear. The LLC lose money then it will off set my income from my regular job and deductions so I will pay a minium in taxes to the IRS. Wont this work?

….are they talking about Income BEFORE deductions/taxes paid…

or are they talking about the bottom line on your 1040!????

say for example you have 0,000 in income on a self employment business…..but have 0,000 in expenses….is your "income" that they are talking about, the 0,000…or ,000????????

I have read that those with "incomes" over 0,000 are more likely to be audited….but what income are they talking about….gross…or net….after all expenses/deductions, etc??
I believe (I don’t have it here with me) but our AGI on our 1040 after everything was about ,000.

We have self employment, but we also both have full time jobs. Our losses on our self employment each year is almost always because of depreciation! if we didn’t have to add that in, we’d make a little!!!

I own a service based business where I set appointments up weeks in advance. On occasion clients will cancel at the last minute on me. This leaves me with an open slot and a few hours where I can’t earn any money. Can I count those lost dollars that I would have earned if they didn’t cancel as a deduction on my taxes? If so, how?
So what are the losses that the IRS allows you to deduct? Real goods like equipment, theft, etc.?

things like marriage status, you can deduct hobby expenses but not medical expenses (unless its over 2% of your income)
business can deduct their legal expenses even if they’re are at fault, but an individual can’t deduct theirs even if they are aquitted. You have to make a choice between taking the standard deduction which is less than half the poverty level or itemizing your deduction. The tax is progressive until you get to about a million dollars then suddenly its a flat tax. If your spouce dies you suddenly have to pay higher taxes. I could go on. I’d like to hear some horror stories of other countrys tax code.
another one i just had to add. Earned inocome is taxed but unearned isn’t
I have read the last years tax code and the year before it doesnt say anything about income from a hobby just expenses. If I’m wrong about unearned income then George Bush and Al Gore must be wrong for all there talk about raising the taxable minimum from 1 million to 2 million.
if you are refering to gambling winnings, well you still have to place a bet so its not really unearned but you can deduct your losses but only in the year you lost them.
the problem is the stupid tax code makers even list capital gains and interest income as unearned income.

we had fun making a film this past year (2006) which we’re planning on selling in either the following year (2007) or the one after that (2008) depending on how things go. obviously we’re concerned about things slipping into hobby expense territory, but hypothetically if we do sell the film, we’ll obviously owe taxes on the profit and we’d want to use the expenses from the time we were making it to offset those taxes. do we file the losses this year against our regular income or can we "carry over" the deductions into the year we make profit? and what forms does all of this involve, assuming we’re working under a sole proprietorship?

I am going to owe the IRS around 0 this tax year.

I have a business, which i couldnt attend to this year and it has 0 in losses and {content} in revenue. Making it a Net Loss of 0.
Out of the 0, 0 was for the business licenses, ebay fee’s.

My question is will i be able to claim this 0 as a deduction on my personal income tax, because i will be filing my business tax with my personal tax.