Tax Cuts

[Cats Cats Cats]

Small businesses are the ones small enough to not be affected by any tax action by the present administration and congress.

This isn't entirely true.  I could see small business being under $400k a year.  Just because you have one good year doesn't mean you aren't going to lose 200k the next year. Etc etc.

[nathanm]

This isn't entirely true.  I could see small business being under $400k a year.  Just because you have one good year doesn't mean you aren't going to lose 200k the next year. Etc etc.

Business losses can be carried both forward (up to 7 years) and backward (up to 3 years). Stuff like this is why it's important to have a good accountant if you run a business. So in your scenario, $200,000 worth of income from last year could be offset, thus generating a refund check.

With the perception of rising taxes, you'd be better off taking the carryforward later when your tax rate is higher. At least that's my understanding of how it works, which is admittedly cursory at best.

[Red Arrow]

This isn't entirely true. 

Sure it is.  A business will be defined as small after congress figures out what taxes will be.  If you are not affected negatively, you will be declared to be a small business.  Pretty simple really.

[borman09]

One of a wide range of tax cuts available. By choosing this option each tax year, pensioners can split up eligible pension income with their spouse or common law partner and reduce their overall tax paid.