If I have no business income do I still need to report my business information or expenses?
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New Member

If I have no business income do I still need to report my business information or expenses?

I technically have a business, that I started in 2017 and I hope will one day turn into an extra source of income, however, in 2018 I didn't have the time to push the business and made $0 income. Since there was no income do I even have to put any information about the business (including the expenses incurred) on my return?

Since I wasn't really trying to make it successful, I'm worried about the passive income rules getting me in trouble if I claim the losses and they impact my active income (W2 wages).

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New Member

If I have no business income do I still need to report my business information or expenses?

If you are considered as self-employed, then you are required to file a Form 1040 Schedule C or C-EZ). You do not need to file the form if your yearly income was less than $400. 

You are also not required to file a return if you weren't actively engaged in your business, or you were preparing to begin your business.

Once your business begins you can either deduct or amortize your start-up expenses rather than filing now with no income.

If you are actively engaged in your trade or business but didn’t receive income (e.g., You're not paid until the work is completed) then you should file and claim your expenses. You can show a loss on Schedule C when filing taxes with no income to offset other income.


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