Submitted By: Smith
Answered: February 2, 2012 12:00 pm

The first year of my business was 2011 and the business made no money. Do I have to file a return for the business?

Yes. There is no minimum sales or profits threshold for filing a return to report the revenue and expenses for a business. As a self-employed individual, you file Schedule C with Form 1040. If your business shows a loss, you may have a net operating loss that can entitle you to a carryback that generates a tax refund for you.

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Tax Glossary

Cancellation of debt

Release of a debt without consideration by a creditor. Cancellations of debt are generally taxable.

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