That's perfectly typical and blanks are as good as $0. You can still claim business related expenses, even though you had no revenue.
You can deduct
expenses as long as you can prove that you opened or were in business in the
year expenses were incurred. To be deductible, a business expense must be both
ordinary and necessary.
Also, the IRS expects that if you start a business,
you intend to make money at it. If you don't, your business is likely to be a
hobby, if which case you can only claim expenses to the extent of your hobby
income. To determine if your business is a hobby, the IRS looks at numerous
factors, including the following:
- Do you put
in the necessary time and effort to turn a profit?
- Have you
made a profit in this activity in the past, or can you expect to make one
in the future?
- Do you have
the necessary knowledge to succeed in this field?
- Do you
depend on income from this activity?
- Are your
losses beyond your control?
As a Business, you
are considered to be self-employed. You report both income (if any) and
expenses on Schedule C/Business Income & Expenses.
