Bought cows w/FSA Microloan in 2018. Didn't make loan pmts or receive revenue in 2018, but we incurred expenses. Do we report as sole prop business w/no income?

 
Carl
Level 15

Business & farm

Just to clarify for others reading this thread, "we" don't own a sole proprietorship. There can only be one owner of a sole proprietorship.
Basically, if you were "open for business" in 2018, then you report all income/expenses on your 2018 tax return. Doesn't matter if your income was zero, and/or your expenses were zero. Any expenses incurred prior to being actually "open for business" are start up expenses and are reported as such in the first year you are actually open. It doesn't matter what tax year those start up expenses were incurred in either.
Anonymous
Not applicable

Business & farm

what type of business. the reason i ask is you may need to enter the expense on form 4835 (farm) rather than schedule C.