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giam2012
New Member

I registered a sole proprietorship in 2017 and had start up business expenses. However I had zero revenue or income from it. What forms do I need to fill out, if any?

I also have a standard w2 job.

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I registered a sole proprietorship in 2017 and had start up business expenses. However I had zero revenue or income from it. What forms do I need to fill out, if any?

Yes, you may be able to deduct your startup business expenses even though you didn't earn any income. The deduction is reported on Form Schedule C of your Self-employed business expenses, which will be filed with your personal taxes. 

"How these expenses are handled:

Up to $5,000 of startup costs paid or incurred can be deducted if the total startup costs incurred don't exceed $50,000. An election can be made to amortize costs in excess of $5,000 over a period of 15 years.

If total startup costs exceed $50,000, the excess over $50,000 reduces the amount you may deduct. For example: If you incur $52,000 worth of startup costs, you can deduct $3,000 ($5,000 - ($52,000 - $50,000 = $2,000)) and amortize the remaining $49,000 over at least 15 years."

See helpful links on business startup costs and expenses below.

Startup Tips FAQ

IRS Business Expenses

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