@amir_natan wrote:
Yes, I know that. The question is not deducting expenses from the W-2 income. Let’s assume I didn’t have ANY income this year but only expenses. Can I write them off somewhere? I wrote them off last year.
Only if they are for an active trade or business that is what I'll call serious business and not a "hobby." (Then on a Schedule C.) If it is a hobby you can only deduct expenses up to your income in that business (income here does not include W2 income). I.e. you cannot use hobby losses to reduce your other income.
Figuring out if you are a business or hobby is not easy. There are nine factors and nothing is black and white. Except that there is a "safe harbor" - you are conducting a business and not a hobby if you have a profit in three of the last five years. The basic rule is that if you are losing money you have to be very serious (plans, research, etc.) and likely to turn a profit.
See if this article helps you:
https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
