Yes, you may be able to deduct your startup business expenses even though you didn't earn any income. The deduction is reported on Form Schedule C of your Self-employed business expenses, which will be filed with your personal taxes.
"How these expenses are handled:
Up to $5,000 of startup costs paid or incurred can be deducted
if the total startup costs incurred don't exceed $50,000. An election can be
made to amortize costs in excess of $5,000 over a period of 15 years.
If total startup costs exceed $50,000, the excess over $50,000
reduces the amount you may deduct. For example: If you incur $52,000 worth of
startup costs, you can deduct $3,000 ($5,000 - ($52,000 - $50,000 = $2,000))
and amortize the remaining $49,000 over at least 15 years."
See helpful links on business startup costs and expenses below.
Startup Tips FAQ
IRS
Business Expenses
