I started my own direct sales business while working elsewhere. Did not make any money yet as it was just my start up costs and ordering supplies. Which one do I use?

cccurran20 — Sat, 01 Jun 2019 02:04:21 GMT

You have started a business in 2016. Even if you have not...

MinhT — Sat, 01 Jun 2019 02:04:22 GMT

You have started a business in 2016. Even if you have not yet made any sales in 2016, you can deduct start-up costs in the year you started your business.

Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business. Organizational costs include the costs of creating a corporation.

Claiming your start-up costs will result in a loss, which helps reduce your taxable income.

In order to claim these start-up costs on your tax return, you'll need to use TurboTax Self-Employed (online version) or TurboTax CD/Download (desktop version).

topic I started my own direct sales business while working elsewhere. Did not make any money yet as it was just my start up costs and ordering supplies. Which one do I use? in Get your taxes done using TurboTax

I started my own direct sales business while working elsewhere. Did not make any money yet as it was just my start up costs and ordering supplies. Which one do I use?

You have started a business in 2016. Even if you have not...