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New Member

Small side business write offs

I started a small side business and a consultant with a large skin care company this year. I make purchases every month and was told that I am able to write them off I just don't know how to do so. I did not make any money from it in the 2016 calendar year.
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New Member

Small side business write offs

If you had no sales in 2016, then your inventory purchases will not be deductible in 2016.  Other expenses that you may have paid will be, though.

If you have a business that purchases items for resale and has a constant stock of items, you are able to deduct the cost of the items only when they are sold.  Any stock on-hand is considered inventory, and is not deductible when purchased.

There is no specific amount of gross income (money coming in) or profit that you must meet in order for your other expenses to be deductible.

Important note:  You are only able to deduct your expenses in the year that you paid them - you cannot save them for a future year.

To get to the input screens for your business:

  • Once signed into your account, click on Search at the top of the screen
  • Input "schedule c" into the search box and hit Enter
  • The first link available should be Jump to schedule c - click on this link
  • You will be taken to the screens to enter your income, business information, and expenses
When you come to the input screen for your income, simply do not enter anything. Work through the other screens that come up (business information, etc.) and then you will be able to enter your expenses.  
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