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Started home business in 2016. Business expenses. No income. Have not set up a corporation yet. How can I deduct business expenses?

 
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Level 1

Started home business in 2016. Business expenses. No income. Have not set up a corporation yet. How can I deduct business expenses?

If your sole proprietorship business was not "open for business" in 2016, then you do not report these expenses on your 2016 tax return. 

  • These expenses are considered "startup" expenses. Startup expenses are those expenses incurred before the business is running.
  • You claim your startup expenses on the tax return for the tax year you are "open for business". 
  • For startup expenses, it does not matter what year they were incurred. 
  • Keep your receipts and other paperwork, related to the startup, with your business information.
  • Enter the startup expenses in the year you are open for business.


If your sole proprietorship business was "open for business" in 2016:

Log on to TurboTax and click on the orange button, Take me to my return.

  • Type sch c in the Search box.
  • Click on “Jump to” link. 
  • If you have not set up your business, you may be asked some general questions about your business otherwise, click Edit.
  • On the Your XXX Business screen, scroll down to Business Expenses and choose the appropriate Business Expense category.
  • Continue with the onscreen interview until complete.

Related information: 

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Highlighted
Level 1

Started home business in 2016. Business expenses. No income. Have not set up a corporation yet. How can I deduct business expenses?

If your sole proprietorship business was not "open for business" in 2016, then you do not report these expenses on your 2016 tax return. 

  • These expenses are considered "startup" expenses. Startup expenses are those expenses incurred before the business is running.
  • You claim your startup expenses on the tax return for the tax year you are "open for business". 
  • For startup expenses, it does not matter what year they were incurred. 
  • Keep your receipts and other paperwork, related to the startup, with your business information.
  • Enter the startup expenses in the year you are open for business.


If your sole proprietorship business was "open for business" in 2016:

Log on to TurboTax and click on the orange button, Take me to my return.

  • Type sch c in the Search box.
  • Click on “Jump to” link. 
  • If you have not set up your business, you may be asked some general questions about your business otherwise, click Edit.
  • On the Your XXX Business screen, scroll down to Business Expenses and choose the appropriate Business Expense category.
  • Continue with the onscreen interview until complete.

Related information: