Let’s say I do freelance work as a landscaper for a company and make regular money at it, with not many write-offs. But then let’s say I decide to start up a second, unrelated business as an interior designer, with lots of start-up costs and investments, and get a business license for that.
I decide to pay my taxes quarterly. I have $10,000 gross income for the quarter from the landscaper work, and only $1,000 gross from the interior design, because I’ve only had one job since starting the design business. However, I have $5000 in start-up costs from the interior design business.
Do I add up all of my income, deduct expenses and pay taxes on that, or do I pay taxes on the 10K, and then claim no net income on the interior design business?
You are not a tax accountant, I know. I’m waiting for mine to call back…