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I do consulting; work done in 2016 was paid in 2017. I incurred 2016 expenses but will not have a 1099 until next year. Is it ok to claim a loss with no income or 1099?

Forum|Forum|7 years ago
June 5, 2019
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TurboTax Home & Biz Windows

Best answer by SeanE1

Most individual taxpayers are on the cash basis instead of the accrual basis and therefore include only income that is actually received in a given tax year. So for 2016, if you received no income, you would create your Schedule C showing all of your expenses with no income. Don't worry, most businesses either show a loss or breakeven during the first few years of operation. For 2017, things will level out and you will show both income and expenses.

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SeanE1Answer

Employee

Most individual taxpayers are on the cash basis instead of the accrual basis and therefore include only income that is actually received in a given tax year. So for 2016, if you received no income, you would create your Schedule C showing all of your expenses with no income. Don't worry, most businesses either show a loss or breakeven during the first few years of operation. For 2017, things will level out and you will show both income and expenses.