Exactly, HOGG! That nailed me in the ass last year. The only way around it is to operate at a loss if you're single and no dependents. What's the point in being in business if you can't make a profit? Sure, you could estimate your tax hit ahead of time, then just offset it by dumping $$ into a Owner-only 401(k). But, who has that kind of $$ sitting around, especially when working on commission? Maybe I was missing the boat, but I worked my income as low as I possibly could w/every allowable (& some not so allowable) deduction I could come up w/, then took a $5,000 tax raping! At 24 yrs. old, that's fucking discouraging! It's good to be back in school and not dealing w/that anymore!
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