Gross profit is different from gross profit margin. In our example above, the gross profit for your fireworks business is $450,000, or revenue ($750,000) minus cost of goods sold ($300,000).

Continuing with the example, if the bakery owner wants a minimum monthly profit of $10,000, the profit-adjusted break-even sales are $100,000 plus $10,000 divided by 0.25, or $440,000, and the ...

If you want to declare a business loss, you can't file a 1040EZ or 1040A; you must use the 1040.

Attach Form 8949 to your return. Calculate your net capital gain or loss and report capital loss carryforwards from any prior year on Schedule D. You also must attach Schedule D to your Form 1040.