Hello everyone,
In my search for answers pertaining to this question, all I could find was the exact same response from just about every person, which does not answer the underlying question of: "how does a small business without any income receive a tax return or credit by deducting (in reality it's considered capitalizing) their start up costs, when there isn't any income to deduct the expenses against?". This was my main concern, and filing as a small business, aka claiming expenses, made zero sense to do until the year you actually make money. Here's the answer: even though your business has NOT made income yet, but you were required to purchase necessary items to "start-up", claiming these costs will result in a return or credit because they are being deducted against the income from your regular job.
I hope this helps and saves you the time and money I had to spend in order to answer this simple question.
