Scenario: I was newly self-employed beginning November 2023. I purchased cases, tools, and supplies in December for technical contract labor (so definitely not capital). I was paid a small sum WELL below the 1099 threshold for one odd job in December, so there will be no 1099 from that client. I am already busy with 2024 work however, but this gear was bought last year. So I have two questions for the community:
1. Since I earned a de minimis amount of cash in this role in 2023 and I won't receive a 1099, how do I report the tiny income somehow on my taxes and claim the December 2023 expenses? Or...
2. Do I report zero income on Schedule C and only report expenses? That seems weird, but if it's okay to do that I will, or...
3. Can I claim the December 2023 expenses toward my 2024 business? I'd hate to miss the opportunity to apply these expenses *somewhere*.
What's the generally-accepted, legal and proper way to settle this little wrinkle?
