can I show a loss business accounting?
I have an LLC and this will be my first time filing taxes on my business. I have not consulted an accountant as of yet but this question is on my mind.
I built something for a customer. I bid this job for 300 hours of labor to complete at a specific dollar amount per hour. I kept track of all my time in this project. I spent 600 hours labor building it. I did this knowing that it would take longer as there are plans to build more. However, I technically lost 300 hours in labor. Time that I could have been doing something else for monetary gain. Even though I made a profit for this 300 hours, I lost money because it took double the time to complete.
Is it possible to show this as a loss and reduce any tax liability? How can I if this is possible? Explain please if not too complex of an answer.
Thanks in advance!
- Wayne ZLv 78 years agoFavorite Answer
For tax purposes, your time has no value so there is no way to increase your deductions because it took you longer than expected.
- Cash In the Door - Income
- Cash Out the Door - Expenses
- Value of Time - No effect either way.
- troLv 78 years ago
you own labor does not enter into the matter of profit or not
the cost of producing the product will include the materials, if you had to use outside services et
and if you have registered as an LLC you do realize that this is not recognized by IRS, it is either a Corp, a Partnership or a sole proprietor, and as a Corp you would file a 1120, a 1065 as a Partnership, or a Sch C with your 1040 as a sole proprietor
how did you register with your state, or did you? you apparently haven't decided how to operate and from your scenario it appears to be a sole proprietor
- BobbieLv 78 years ago
No nothing is allowed on your 1040 income tax return or in accounting just for your TIME at all ever for this purpose has NO value at all when you do NOT collect some type of income in value for this purpose and time in your life.
Hope that you find the above enclosed information useful. 12/09/2012
- JudyLv 78 years ago
No,that's not an ACCOUNTING or TAX loss. You just made a lot less than you hoped.
Your labor doesn't go on your tax return. You show the actual money you took in, and the money you put out for expenses like materials.
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- buckelewLv 44 years ago
hi it truly is tim lak lak, and that i might want to like to respond to ur question P& L ie income and loss account help business organisation to comprehend the way r they goin ,, even if or not they r makin a benefit s contained in the comapany or they r short of the marketplace criteria and getting a loss.. in monetory aspects....... in the journey that they r getting the loss they could rectify their blunders and compansate the artwork ..... they can make can make an time table of the failings to carry on to make income. stability SHEET helps them to figure out what resources they r holdiing contained in the business organisation,,,and what liabilities they ar having,, if the resources are equivalent to liabilities than they r havin a stability expenses administration.... so those accounting specialities r use to figure out the monetary status of the comapany out and in.. desire this can help u.. thanks ..