Skip to main content
June 1, 2019
Question

Tax Year Prior to 2020: I had expenses on a small business with no income. Can I use these deductions in 2017?

  • June 1, 2019
  • 1 reply
  • 0 views

I keep sending this request and have not gotten an answer. It will dictate the way I file taxes, so I need to know to continue.

1 reply

June 1, 2019

If your business start date is in 2017, then you will claim them for that tax year. However, if you actually started your business in 2016, and were able to receive income (but just didn't), then you would report them on your 2016 tax return.

You will file a Schedule C as a self-employed person.  (This is true as long as you have not taken any steps to become a corporation or are not a multi-member LLC.)

The Schedule C loss will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to the area to enter your business expenses  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area.

You can use your own name and address for the business, if you don't have a business name.  And, there is no need for an EIN when it asks for that, if you don't have one. 

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .