I have 2019 self-employed expenses but the income will not show until 2020. How do I enter the expenses in 2019?

[Carl]

If your business is a sole proprietorship or single member LLC that you are reporting on SCH C as a physical part of your personal 1040 tax return *********AND******** you were "officially" open for business on or before DEC 31 of 2019, you'll report $0 for business income, and whatever you spent on business expenses, as expenses. Yes, it's that simple. Of course, with no business income to deduct those business expenses from, it won't make a penny of difference to your tax liability. But those "unallowed" expenses will be carried forward to 2020 and deducted from your 2020 business income *IF* you have the business income in 2020 to deduct them from.

If your business was "NOT" open for business in 2019, then you have absolutely nothing to report concerning the business and will not file a SCH C at all.

All expenses incurred "before" the business is "open for business" are start-up expenses. They get claimed as start up expenses in the first year the buiness is actually "open for business". It does not matter in what tax year those startup expenses were incurred either. But you can't deduct startup expenses until the first tax year the business is actually "open for business".

[Carl]

Oh yeah. Make sure you know the difference between startup expenses, business expenses, and business assets.

 - Start up expenses are those expenses incurred prior to being "open for business"

 - business expenses are those expenses incurred in the normal day-to-day operations of the business.

 - Business assets are those physical items you purchase to use in the business for the purpose of producing income. What you pay for business assets is not deductible. Business assets are capitalized and depreciated over time. You deal with business assets in the "Business Assets" section of the program.

If your business uses a street legal vehicle for business purposes, you deal with that in the "Business Vehicle Expenses" section. (there are some exceptions to this - but it depends on the specific vehicle and precisely what that vehicle is used for.)

[tagteam]

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@Carl wrote:

.... with no business income to deduct those business expenses from, it won't make a penny of difference to your tax liability. But those "unallowed" expenses will be carried forward to 2020 and deducted from your 2020 business income *IF* you have the business income in 2020 to deduct them from.

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Just so this is clear and not misinterpreted, a net business loss is not "unallowed"; it can be used to offset any type of income. Further, the loss can result in an NOL which can carried forward to the following tax year and, again, used to offset any type of income.

A business loss would not be "unallowed" or suspended unless the owner (sole proprietor) did not materially participate in the business which would ordinarily be a rare occurrence.