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WCI #238: 2021 Financial Book Reviews

White Coat Investor Podcast

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How to Use Losses to Offset Your Taxes?

Any new business you start can generate a loss, and those losses can offset your ordinary income. However, if you keep losing money year after year after year, you're at risk for the i r s re classifying your business to a hobby. Only business losses are deductable. So by year four, you really need to be making a profit with this business. But if you you don't realize it's not working out an year two, you can just drop it,. And yes, all those losses will be deductable. All right, i want to thank everybody out there for being white coat investors. Thank you for being part of our community.

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