Josh is an employee of a large Accounting firm in the city earning $120,000 per year. On weekends, to earn extra income, she established a small business selling Pokemon soft toys at the local market. In the first year of operating her business, she earned $8,000 revenue and incurred expenses of $10,000. Can he offset this loss against her salary income of $120,00? Would your answers will be different if Joss has been doing business this year for the past 5 years and the it was profitable on the first 3 years.

Book: Taxation law