Eli5: how does one report millions in “negative” income?

Question

I just got done looking at someone’s tax returns and for several years they reported millions in “negative” income… how is this possible when this person is a billionair.

In: 4

Answer 1

Cause they lost money… You do realize billionaires can lose money too? Billionaires can afford to invest more which means that they can also lose more than an average investor/businessman.