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W2016
January 31, 2023
Question

if the business showed a loss for 4 years, do I fill out a schedule C and just show no loss on 1040?

  • January 31, 2023
  • 1 reply
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If the business showed a loss for 4 years, do I still fill out a Schedule C and just show 0 on the 1040

    1 reply

    M
    MonikaK1
    January 31, 2023

    If you are continuing to operate a business with the intent to make a profit, and you have a net loss, you should still complete Schedule C, including a loss if correct, and include it with your tax return. 

     

    You should keep good records of your income, expenses, and efforts to make a profit in case of an IRS audit.

     

    See this article: When the IRS Classifies Your Business as a Hobby for more information.

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