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posted Jun 3, 2019 10:50:30 AM

My business activity in 2018 was sales efforts but no revenues. I did have expenses - may I report them?

I am reviving my business in a new form so that's why no revenues yet, only expenses. The same was true in 2017. May I report only expenses again for 2018 since I had no sales? 

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1 Best answer
Intuit Alumni
Jun 3, 2019 10:50:33 AM

Yes, you can claim the expenses without any income.  However, the IRS expects that you are conducting your business to make a profit and should they determine that is not the case they will disallow all the expense deductions you have taken.  You need to have and maintain accurate and detailed records of your business activities to support your position.

 

[Edited 03/10/2020 | 1:06 pm PDT]

1 Replies
Intuit Alumni
Jun 3, 2019 10:50:33 AM

Yes, you can claim the expenses without any income.  However, the IRS expects that you are conducting your business to make a profit and should they determine that is not the case they will disallow all the expense deductions you have taken.  You need to have and maintain accurate and detailed records of your business activities to support your position.

 

[Edited 03/10/2020 | 1:06 pm PDT]