How long are you allowed to show a loss for a small business? Started as independent consultant in Aug 2012 & had losses in 2012, 2013 & now 2014. Is this allowed?
I have a small business on the side (Independent Consultant) which I started in August 2012. I reported my startup costs, commission, business expenses, cost of goods sold, etc as a loss on my 2012 and 2013 income tax. For this year 2014 I also generated a loss with all the business expenses. Am I allowed to still report a loss this year?
How long before you need to show a profit for your small business? Do they count your profit/loss as your commission only or commission minus business expenses?
Also where would I claim the cost of my booth at a trade show? I do trade shows to advertise my products and obtain new leads for clients so is this an advertising expense or something else?
Thank you in advance for your help!