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Yes, you can deduct self-employment expenses even if you didn't have self-employment income, but you must have been engaged in a self-employment or contract position.
You don't need to show a profit every year, but the IRS looks for profit two of every five years.
These expenses cannot be deducted against other types of income.
For example, if you are new Uber driver, you may have income of $50, but expenses of $5,000. This is okay and you will show a $4,450 business loss. You can even have $0 income as long as you were actually actively engaged in business.
For more information, follow this link: TurboTax Schedule C for Self Employment
Yes, you can deduct self-employment expenses even if you didn't have self-employment income, but you must have been engaged in a self-employment or contract position.
You don't need to show a profit every year, but the IRS looks for profit two of every five years.
These expenses cannot be deducted against other types of income.
For example, if you are new Uber driver, you may have income of $50, but expenses of $5,000. This is okay and you will show a $4,450 business loss. You can even have $0 income as long as you were actually actively engaged in business.
For more information, follow this link: TurboTax Schedule C for Self Employment
If the IRS audits you, it will help if you have some documentation (such as a mileage log book) showing that the deducted expenses were actually business-related.
You deduct the expenses on Schedule C.
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