How do I enter small business expense deductions if I haven't made an income yet?

Forum|Forum|1 year ago
February 14, 2025
2 replies
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I started an event series in March 2024. We had nine events in 2024 with almost 200 participants total. The venture takes considerable time and effort, has a social media presence and is regularly marketed, and I have expertise in the field. The events are free, and therefore I have no profit, but we started charging admission in 2025 and expect a profit this year. I have a W2 income from my regular job. How do I make deductions in TurboTax without having an income associated with this business venture?

PatriciaV

Employee

Yes, you can report this activity on Schedule C as a self-employment business even if you had no income. As long as you intend to make a profit over the next few years, the IRS would not consider this to be hobby activity.

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AmeliesUncle

If you were not attempting to earn income in 2024, those expenses are "startup costs" that are not used until the business opens (ready and trying to earn income).