Can you claim receipts for materials purchased for your business even if you did not make any income?

Hi everyone. I'm a college student and my parents claim me as a dependent. I began collecting craft machines and shipping supplies for a business last year. I even got a sole proprietorship set up. However, I hadn't started to sell items yet. My parents advised me to hold onto receipts of things I purchased, which I have, but now I'm unsure if I can claim these receipts if I didn't make any income. I would really appreciate an explanation of this.

269

Expert Alumni

Mar 2, 2022 11:10:00 AM

Yes, you claim your expenses even if you didn't have any income. To be deductible, a business expense must be both ordinary and necessary.

An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. Irs.gov

To report your self employment expenses:

Log in to your account.
Select Federal from the left menu.
Go to Wages and Income then select Income and Expenses.
Go to Self-employment income and expenses and click start. you'll be asked some general questions about your business. After you answer them, you’ll be taken to enter your Expenses.

Level 15

Mar 2, 2022 5:49:38 PM

if your business hasn't begun you have no deductible expenses. these might qualify as start-up expenses, once it does and that would be the first year you can deduct them

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Can you claim receipts for materials purchased for your business even if you did not make any income?