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Deductions & credits
Yes. You can still claim your real estate agent expenses, even though you had no income. A loss in your business can offset income in other areas of your return and reduce taxes/increase refunds.
You can deduct expenses as long as you can prove that you opened or were in business in the year expenses were incurred. To be deductible, a business expense must be both ordinary and necessary. Please note that if you do not have profit for three out of five years, IRS might question your profit motive.
As a real estate agent, you are considered to be self-employed. You report both income (if any) and expenses on Schedule C/Business Income & Expenses.
Please see this TurboTax Tax Tip about Schedule C.
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‎February 11, 2023
9:04 AM