https://ttlc.intuit.com/community/taxes/discussion/business-tax-sole-proprietorship-llc/01/2792074#M1030015 <P>I have a sole proprietorship LLC&nbsp; operating in its 3rd year now but there has been no revenue and actuals post negative return. Do I need to be concerned about claiming itemized deductions when there are revenue losses for a 3rd year straight? Would there be tax penalty implications at this point?</P> Tue, 10 Mar 2026 06:54:21 GMT LTM1 2026-03-10T06:54:21Z https://ttlc.intuit.com/community/taxes/discussion/business-tax-sole-proprietorship-llc/01/2792074#M1030015 <P>I have a sole proprietorship LLC&nbsp; operating in its 3rd year now but there has been no revenue and actuals post negative return. Do I need to be concerned about claiming itemized deductions when there are revenue losses for a 3rd year straight? Would there be tax penalty implications at this point?</P> Tue, 10 Mar 2026 06:54:21 GMT https://ttlc.intuit.com/community/taxes/discussion/business-tax-sole-proprietorship-llc/01/2792074#M1030015 LTM1 2026-03-10T06:54:21Z https://ttlc.intuit.com/community/taxes/discussion/re-business-tax-sole-proprietorship-llc/01/2792099#M1030016 <P>If you have income other than the LLC, then itemized deductions or standard deduction should be considered. If not, and if totality of all income is a loss, then it shouldn't.&nbsp; The implication for multiple loss years is that of a hobby loss. See below link. However, if your are operating the business for profit, then a few loss years,&nbsp; back to back should not matter.</P> <P>&nbsp;</P> <P><A href="https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK" target="_blank">Business as a hobby</A></P> Wed, 16 Nov 2022 19:45:24 GMT https://ttlc.intuit.com/community/taxes/discussion/re-business-tax-sole-proprietorship-llc/01/2792099#M1030016 R-SchuleCPA 2022-11-16T19:45:24Z