A loss sustained by an individual proprietorship (federal schedules C, E, or F) may not be used to offset the profits earned in a partnership, S-Corporation, or other flow-through entities.
A loss sustained in a partnership, S-Corporation or other flow-through entity may not off- set the profits of an individual proprietorship (federal schedules C, E, or F) nor the salaries, wages, commission or other personal service income.
A loss sustained by a business entity may not be used by another business entity to reduce the amount of net profit earned by the parent company, unless a consolidated return is filed with the Internal Revenue Service.
An individual who runs two or more businesses as individual proprietorships, may offset the net profits of one such business by the loss of the other, (but not against salaries, wages or other personal service compensation).
(Ord. 2003-79. Passed 12-2-03.)