Question by Thomas: If I don’t make any money for taxes in my home based business, will I be penalized?
I have my own home based business and need to get my EIN, if I don’t make any money when I go to pay my taxes, will I be penalized?
Answer by Robert R
After two years you the IRS will disallow your home base business deductions due to a (hobby tax rule). However if you are building and working your business and you can show that your business is growing and will show a profit in the future you may be able to extend the two year window. If you are building a home base business and you would like free software to allow you find business information locally check out the video at the below link.
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