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My husband started a new business this year as a self-employed sales man. He incurred $1500 of business expenses but received no revenues. Can we deduct his expenses?

Forum|Forum|7 years ago
June 4, 2019
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Due to lack of revenues, he abandoned this business before year end. He is also a pastor and receives a W-2 for that job.

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Best answer by Patrice11

Yes, however it depends on whether the primary intention was to make money. If your primary goal was to earn income then you are allowed to write off your expenses as they relate to starting the "business".

If the business was to make money (ie: you have a profit motive), you report your income and expenses on Schedule C. If you have a loss, the loss is deductible against any other income you may have.

P

Patrice11Answer

Employee

Yes, however it depends on whether the primary intention was to make money. If your primary goal was to earn income then you are allowed to write off your expenses as they relate to starting the "business".

If the business was to make money (ie: you have a profit motive), you report your income and expenses on Schedule C. If you have a loss, the loss is deductible against any other income you may have.