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Question about deducting expenses for a business that had no income in 2016 due to it's start late in the year. Can I deduct expenses with no income for that business?

Forum|Forum|7 years ago
June 4, 2019
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I started a second business in Nov 2016 but had no income for it until Jan 2017. However I did incur expenses for the business in 2016. Can I deduct those expenses without showing any income for that business in 2016? Would this be a flag for an audit?

TurboTax Self Employed Online

Best answer by PatriciaV

Yes, even though you had no business income during the year, you may report your business activity on Schedule C.

If you indicate that the business began in the last quarter of the year, the lack of income would not be unusual.

To enter self-employment income in TurboTax, go to My Account >> Tools >> Topic Search. Type in "schedule c", click the topic in the list, then click "GO".

Follow the prompts to set up you business and enter expenses and assets.

Be sure to keep good records.

PatriciaVAnswer

Employee

Yes, even though you had no business income during the year, you may report your business activity on Schedule C.

If you indicate that the business began in the last quarter of the year, the lack of income would not be unusual.

To enter self-employment income in TurboTax, go to My Account >> Tools >> Topic Search. Type in "schedule c", click the topic in the list, then click "GO".

Follow the prompts to set up you business and enter expenses and assets.

Be sure to keep good records.

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