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March 19, 2024
Question

I started my own business last year but did not make revenue. Can I submit expenses for the sole proprietorship on my personal taxes?

  • March 19, 2024
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March 19, 2024

Yes, if you were actively in business and attempting to make money then all of your business expenses are deductible even though you didn't have any income.

 

If you had not actively started your business yet, however, then any expenses that you had are called 'start up expenses' and they are bundled together and taken as a deduction that is spread over the first five years that you are in business.  

 

Keep in mind that if you have a business that does not generate income for three years in a row the IRS views that as a hobby and can disallow any deductions that that business has taken.

 

@tinamaatkristens 

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October 23, 2024

Good evening, I started a business last year. Invested much more on travel, materials, etc. Because I do have my own business, my personal taxes are in pergetory, if you will. I did not see any options on TurboTax website to just amend my business taxes. Or did I miss a very important article of mail? Am I missing something here?

 

Please advise.

 

Thank you kindly,

Joseph Hooper 

October 28, 2024

How is your business structured? -sole proprietor, LLC? ( how many members in LLC? 2 or more is classified as a Partnership for tax purposes. ) SCorp, LLC taxed as SCorp, Partnership?