What is Net Loss?
A net loss is the result of a financial operation that fails to generate enough revenue to cover all expenses associated with the operation. In a business setting, the net loss represents the negative amount that is realized when sales of finished goods fail to cover the expenses associated with producing the goods. It is also possible for investors to realize net losses on one or more investments over the course of time. For the purposes of accounting, the net loss makes it possible to document the exact status of any type of financial enterprise, both in a business and in a home budget. Any home that has more total expenditures than total income for the household is said to be operating at a net loss. As with a business situation, a financial accountant that notices a continual trend of a net loss will often urge that expenses be cut in order to either minimize or eliminate the amount of the capital loss. In terms of investing, a net loss can take place when an investment drops below
Use PA Schedule C, F, RK-1 and/or NRK-1 to calculate net loss from business, farm, or profession. (York also allows Schedules G, I, J. West Shore states that Schedule C-F is NOT acceptable.) Do not include S Corp loss. You can find the forms and completion instructions at http://www.revenue.state.pa.us/revenue/ If you had a net loss, you will not be able to file your local tax return online; instead, you will print and mail it along with the appropriate schedules.
