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I started my own business last year but did not make revenue. Can I submit expenses for the sole proprietorship on my personal taxes?

 
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1 Reply
RobertB4444
Expert Alumni

I started my own business last year but did not make revenue. Can I submit expenses for the sole proprietorship on my personal taxes?

Yes, if you were actively in business and attempting to make money then all of your business expenses are deductible even though you didn't have any income.

 

If you had not actively started your business yet, however, then any expenses that you had are called 'start up expenses' and they are bundled together and taken as a deduction that is spread over the first five years that you are in business.  

 

Keep in mind that if you have a business that does not generate income for three years in a row the IRS views that as a hobby and can disallow any deductions that that business has taken.

 

@tinamaatkristens 

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