Murf,
We are saying the same thing. "Black after year two" would mean you
had losses the first two years. To qualify as a legitimate business,
you would need to show a profit, however small, for the remaining three
years of the first five.
But here is the funny part. If you can't show a profit in year three,
close the business. Open up another one under another name, be as legit
as you can, and start the 3-out-of-5 all over again.
The tax rules may have changed since we started our business, but I
doubt it. Consult a CPA to be sure.
The bad part about owning a business is that you need to have an income
to have deductions. The good part about having your own business is
the deductions.
Wes
On Jul 21, 2005, at 1:17 PM, David Murphy wrote:
Wes,
I thought the rule was you had to be in the black after year 2? I
mean, logic says you're not going to make money right off the bat. I
have all the IRS downloads here in Acrobat format and have studied
them ad nauseum but darned if I can quote any beyond what affects me.
Murf
[EMAIL PROTECTED]
[EMAIL PROTECTED]
Member: www.virtualflybox.com
