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Level 1
May 14, 2020 8:34 PM UTC
Question

Schedule C filing

As a theatre director, my husband has always filed a Schedule C and taken expenses.  This year he has no income as a director, but still has expenses.  Can we still file a Schedule C?

 

    2 replies

    Level 15
    May 14, 2020 8:52 PM UTC

    Yes.

     

    You are not required to show net positive income every year on your Schedule C. But understand that if you repeatedly show a loss on your Schedule C, the IRS may start to wonder if you are in business for profit or if this is just a hobby.

     

     

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    Level 15
    May 14, 2020 8:55 PM UTC

    Yes, you can deduct expenses and have a net loss if he made a bona fide effort to make a profit.  Otherwise the IRS could consider the activity a hobby and disallow expenses.