First income tax return...

[KMJ]

Began business in October 2010. Have yet to pay any tax but obviously the time has come to empty my pockets. I've all receipts/expenses recorded, it's only the small matter of figuring out the final figure now.

October 2010 - December 2010 = loss
January 2011 - December 2011 = profit
January 2012 - October 2012 = profit


Is it okay to deduct the net loss from 2010 from the net profit figure in 2011? Do I need to file a return for 2012 or can I just pay 2010/2011?


Thank you.

 

[fizzy]

I don't know about the loss part, but while you will fill in your 2012 return in 2013, you will need to pay preliminary tax for 2012 when you do you pay & file now for 2011.
Preliminary tax is prepaying an estimate of your 2012 tax - usually worked out as either 90% of what your total tax for 2012 will be, or 100% of what your 2011 tax is.

So your first tax return is the only one that tends to involve paying 2 years tax at once, as in subsequent years, you are mainly just paying a preliminary tax estimate for the current year and any difference between the previous year's preliminary estimate and the actual amount (which could be a refund if you overestimated)