TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Question

Streamline entries in late tax return

Forum|Forum|2 years ago
December 11, 2023
3 replies
0 views

If my gross profit minus COGS results in a loss, is there any need to enter business expenses in my late 2021 tax return?

TurboTax Home & Biz Windows

Employee

You can use any business net loss to offset all other types of income.

It inures to your benefit to enter all of your legitimate business expenses.

Employee

Be aware, if you have self employment income you can get in trouble for not reporting all your expenses to qualify for the EIC.

@globaltrader wrote:
If my gross profit minus COGS results in a loss,

A loss from COGS? What unusual circumstances led to that? Without knowing more information, that waives gigantic 'red flags' in my mind. You may want to look through the rules to determine if this is a business, or if it actually is a hobby.

https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes