New small business

[Omahabarb]

I just started a small side art business 2 years ago.  I’ve sold items but am not making a profit yet.  I have quite a few equipment expenses, some materials expenses, and also I’m taking a few classes to further my craft.  Questions I have are: 

1) What does the IRS consider a reasonable amount of time to claim losses before starting to make a profit?

2) things like laptop, phone, and iPad - can I claim the whole expense in one year or spread it out over time?  If so, how do I determine the amount of time to amortize?

thanks

[Alicia64]

The IRS allows you to claim losses for three out of five years. You do not have to show a large profit but a profit. 

If too many years go by without showing a profit the IRS may classify your business as a hobby making it ineligible for tax deductions.

If you are already operating at a loss you may want to spread the cost of your laptop phone and IPad over time so when you are making a profit it will be benificial. Computers depreciate over a five year period along with the Ipad. Your cell phone depend on how much is business use.

Depreciation of Business Assets 

Can Cellphone Expenses Be Tax Deductible with a Business?

Thank you