If your sole proprietorship business was not "open for
business" in 2016, then you do not report these expenses on your 2016
tax return.
- These expenses are considered "startup" expenses. Startup expenses are those expenses incurred before the business is running.
- You claim your startup expenses on the tax return for the tax year
you are "open for business".
- For startup expenses, it does not matter what year they were incurred.
- Keep your receipts and other
paperwork, related to the startup, with your business information.
- Enter the startup expenses in the year you are open for business.
If your sole proprietorship business was "open for business" in 2016:
Log
on to TurboTax and click on the orange button, Take me to my return.
- Type sch c in the Search box.
- Click
on “Jump to” link.
- If you have not set up your business, you
may be asked some general questions about your business otherwise, click Edit.
- On the Your XXX Business screen, scroll down to Business Expenses and choose the appropriate Business Expense category.
- Continue with the onscreen interview until complete.
Related information:
