Pennsylvania SB722 amends personal income tax to redefine net profits and net loss carryovers for small businesses.

Pennsylvania SB722 amends the personal income tax to redefine net profits and net loss carryovers for small businesses. It specifies that net profits are calculated after deducting all costs and expenses from the net income of a business, profession, or other activity. The bill allows a deduction for start-up expenditures and applies rules for determining small business ownership. It also allows net losses from small businesses to carry over for up to twenty years, which can be applied against profits in subsequent years.

Pennsylvania SB722 amends personal income tax to redefine net profits and net loss carryovers for small businesses.

Pennsylvania SB722 amends the personal income tax to redefine net profits and net loss carryovers for small businesses. It specifies that net profits are calculated after deducting all costs and expenses from the net income of a business, profession, or other activity. The bill allows a deduction for start-up expenditures and applies rules for determining small business ownership. It also allows net losses from small businesses to carry over for up to twenty years, which can be applied against profits in subsequent years.