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Get your taxes done using TurboTax
Yes, while
you may not have made any profits, if since you have expenses, you may want to
file a Schedule C to claim them. If you do not claim your expense in the
year you pay them, you may not be able to deduct them in the future when you do
have income. Please read the following article to guide your decision; IRS Publication 334
It will provide you with advice on filing if you have any expenses, such as the
cost of a business license.
Also, if you have another source of income that could off-set the loss in your
business so that you pay your tax at a
lower rate. Example; you receive a W2
from your job for $65,000 with no other income or adjusted gross income
deductions, $65,000 would be your Adjusted Gross Income. However, if you had a
business loss of $3,000 then your Adjusted Gross Income would be $62,000 that
will lead to a reduction in taxable income.