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Can I deduct business expenses, having had $0 income in 2016, or skip Schedule C and state that I did not work in 2016?

Forum|Forum|7 years ago
June 5, 2019
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I am a Management Consultant who has always worked as a subcontractor. I have never formed a company. I guess that makes me a Sole Proprietor. In 2016 I had 0 clients and $0 income. Is it ok to deduct business expenses, having had $0 income, or should I just state that I did not work in 2016?

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Best answer by PatriciaV

If your business is ongoing, you may report expenses in a year when you had no income. The loss will offset other taxable income. As long as you don't establish a pattern of losses year after year, you should be fine.

PatriciaVAnswer

Employee

If your business is ongoing, you may report expenses in a year when you had no income. The loss will offset other taxable income. As long as you don't establish a pattern of losses year after year, you should be fine.

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