My son who is 21, but only earned less than $1,000 last year and was totally supported by us formed a company, I think it is a DBA with a girl he knows. The mother of this girl who is in business loaned them some money for the business. The business did not make any money, I am not sure it even had any revenue last year. I know my son did not get paid any money out of the business. He now claims he was told we cannot claim him as a dependent, because if we did it would affect the loss (I assume the money loaned from the girl’s mother) that they could carry forward to next year. I mentioned this to my accountant who seemed to think that if he was under 21, did not have income greater than $3,300 and was supported by us (living at home), then we could/should claim him and it would have no affect on the business. His only income last year (less than $1000) was working for this girl’s mother’s business, but he still claims that he has to file himself and that he was told that he cannot be claimed as a dependent without it affecting the business (by this girl's mother I think). He doesn’t seem to know much about the business side and it all seems a little suspicious to me. Does anyone know if there is any reason why we could not claim him as a dependent or why it would be more beneficial for him because of their business loss for us not too

Thanks
Phil