# How will tax write offs work if i wont make any money the first year?



## NuzakFarnas (Nov 2, 2019)

I have a 40hr/wk job but I want to start making side money doing computer graphics. I need to update my computer so i was thinking about registering as a business and claiming the new computer. So I usually get $1000 back after filing taxes. So lets say i buy a $500 computer and if i don't make any income by the end of the year specifically with the CG business would i get $1500 back. Not sure how write offs work. Any advice is appreciated. (I tried a search, still confused.)


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## Stevie The magic Unicorn (Apr 3, 2018)

no.

The computer doesn't generate $500 in refund it cancels out $500 in income.


So if you made $10,000 but spent $500 on a new computer, your income (the portion that's taxable) gets lowered to $9,500


So your writeoffs won't come anywhere close to paying for themselves come tax time.


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## percy_ardmore (Jun 4, 2019)

Your business expenses will lower your business income, maybe even show a loss, which could lower your taxable income from your regular job. If your business shows a profit, there will be Self-Employment tax on that, lowering the refund you have been used to getting with just the regular job, but you will be getting more income from 2 sources.


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## NuzakFarnas (Nov 2, 2019)

NuzakFarnas said:


> I have a 40hr/wk job but I want to start making side money doing computer graphics. I need to update my computer so i was thinking about registering as a business and claiming the new computer. So I usually get $1000 back after filing taxes. So lets say i buy a $500 computer and if i don't make any income by the end of the year specifvidmate mobdro word counter ically with the CG business would i get $1500 back. Not sure how write offs work. Any advice is appreciated. (I tried a search, still confused.)


issue got solved!!


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## UberTaxPro (Oct 3, 2014)

NuzakFarnas said:


> issue got solved!!


how?


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## ANT 7 (Oct 14, 2018)

Operate as a sole proprietorship.


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