I'm working on a project and tracking my time which then bill against. I found out there are no more hours to bill for the remaining quarter. I'm a freelancer often working with a budget or flat bid that almost always goes over budget. Most or all the time I keep working and 'eat' those hours as the cost of doing business, it lowers my overall average rate, but I prefer a happy client. I want to know if there are any ways to deduct the loss I'm taking on a project for hours that go unpaid.
If I keep working on the project and tracking hours that I can't be paid for by the client, can I deduct those losses on my taxes against my reported income?
