Gabriel operates his business as a sole proprietorship.This year the business incurred an operating loss.The loss can be used to offset other income he earned during the year.

Question

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As a sole proprietorship, Gabriel's business income and losses are reported on his personal income tax return. He can use the operating loss to offset other income earned during the year, such as wages, investment income, or income from other businesses.

Gabriel Operates His Business as a Sole Proprietorship