ilmscore | Prediction Details
"So now you have zero dollars of taxable income, but you still have a lot of money left over in this deduction. Well, now you have a loss because now you get to tell the IRS, 'Okay, I didn't actually have any taxable income. In fact, I had a $55,000 loss in my business...' Now next year, you might make a little bit more money, let's assume next year that you made $35,000 in your business. Well, now you tell the IRS, 'Hey IRS, I made $35,000 in my business this year, but last year I lost $55,000.' So now you deduct this against this, and again, you have $0 of taxable income... Then the year after that, you get to take the leftover from this loss on your income again. Now you can start to see how some business owners will be able to use debt strategically to carry forward losses against their income, and this can get much bigger when the dollars are bigger too."
By Minority Mindset | November 12, 2023 | Pending
From video
How The Wealthy Pay No Taxes (And How You Can Too) | Jaspreet Singh 00:17:14 - 00:18:44
Interpreted Prediction
Significant business deductions, even if they exceed current income, can create a loss that can be carried forward to offset future taxable income in subsequent years, effectively reducing future tax liabilities.

Prediction Details

Topic
Carrying Forward Business Losses for Tax Purposes

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