Can I claim business expenses even if the business produced no income?

[armando_lara]

Can the expenses also include a cost estimate of one's time? Can I assign a reasonable wage and add that as an expense for tax purposes?

[VolvoGirl]

@armando_lara   No.   If you are filing a Schedule C for self employment or as a Single Member LLC or Sole Proprietor, etc. you cannot take a withdrawal or salary and include it as an expense on your tax return. You are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income. If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.

See Schedule C instructions page C-10 Line 26
Do not include salaries and wages deducted elsewhere on your return or
amounts paid to yourself.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

[aschoenherr]

Can you report startup losses from a K1 limited partnership rental in which you actively participated with no income for the first year? Also have W-2 job also. Turbo tax captures this as passive activity and does not allow the losses. Help!

[cdorr]

You cannot take the home office deduction unless you have a profit.

Same thing with QBI