Re: thanks all esp christy lol lol uh huh

Posted by Christy (152.163.252.196) on July 11, 2004 at 02:16:44:

In Reply to: thanks all esp christy lol lol uh huh posted by catb on July 10, 2004 at 16:28:09:

I think what all of that means is they get to subtract a percentage of that loss from their tax obligation, lowering the amount of tax they owe for that fiscal year. What that percentage is, I don't know, it could be 100% and/or since there would have been interest income for a number of years, they might be able to take the loss for several years, but a smaller percentage each of those years or a set number of years, like 3 or 5. Hard to say, but that is how a deduction for new business and farm equiptment is, then there is also a tax break for depreciation of the equiptment. I hope I didn't confuse you more by trying to explain it to you! My husband's uncle is a CPA, if I remember, I'll ask him the next time I see him.

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