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Level 1
posted Aug 30, 2023 10:07:42 AM

I files taxes 2018-2021 for my self employment. The last 2 years, I had no income from self employment. Can I still take deductions for my office, and other fixed expenses?

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1 Replies
Employee Tax Expert
Aug 30, 2023 10:22:23 AM

Yes, if you were actively engaged in your trade or business but didn't receive income, then you should file and claim your expenses in the year that they were paid.  You do not need to actually make a profit to be in a trade or business as long as you have a profit motive. You do need to make ongoing efforts to further the interests of your business. Refer to publication 334 (2022), Tax Guide for Small Business for more information.