topic Is it a red flag to claim business expenses without income? in Business & farm

Is it a red flag to claim business expenses without income?

JT199 — Mon, 23 Feb 2026 09:39:07 GMT

Hello,

I started an LLC in July of 2022. I spent a few thousand dollars for equipment and training, but haven't started marketing the business yet, so I made $0 in business income in 2022 (I do have employment income). Will it trigger an audit if I claim business expenses on my 2022 tax return without any business income? If so, then can I hold off and claim business expenses from 2022 on my 2023 return? Thank you in advance for your help.

Re: Is it a red flag to claim business expenses without income?

ee-ea — Tue, 31 Jan 2023 06:52:53 GMT

See this info

https://taxschool.illinois.edu/post/deductible-start-up-costs-and-web-based-businesses/

Re: Is it a red flag to claim business expenses without income?

JT199 — Wed, 01 Feb 2023 03:04:33 GMT

Thank you for sending me this article. I read through it, but I'm still a little confused. Understanding taxes and tax laws are not my strength.

From what I gather, I can claim deductions this year even though I haven't earned any income, but I still wonder if this will raise a red flag. In the article, it seems like there were some businesses that were audited because they didn't have any income. Also, I see I can't claim research, which is fine, but what about training courses that are related to marketing and my business activities? Also, if I decide not to claim the business expenses on my 2022 taxes because it may trigger an audit, I'm still not clear if I can claim these expenses on my 2023 return. I expect I will be bringing in business income this year. Thanks again for your help, it is much appreciated.