Mixed Marriages come with benefits and pitfalls.
One of the tax benefits of one of you owning a business is that wages and other income can be offset with any losses arising from the spouse’s business. If losses can offset income from other sources, this will put you in a lower tax bracket.
A slightly over-simplified example:
Let’s say that you are employed full time and that you sell jewelry you make at weekend craft fairs. Your jewelry and craft fair activities make you a business owner. Now let’s take a look at three different scenarios regarding your business. Scenario #1 will be from the year before you decide to start a business. Scenarios #2 and #3 will be the first and second years your business is in operation.
One of the tax benefits of one of you owning a business is that wages and other income can be offset with any losses arising from the spouse’s business. If losses can offset income from other sources, this will put you in a lower tax bracket.
A slightly over-simplified example:
Let’s say that you are employed full time and that you sell jewelry you make at weekend craft fairs. Your jewelry and craft fair activities make you a business owner. Now let’s take a look at three different scenarios regarding your business. Scenario #1 will be from the year before you decide to start a business. Scenarios #2 and #3 will be the first and second years your business is in operation.
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