I have 2016 expenses for a business that I filed articles of organization for in 2017. Can I deduct the 2016 expenses now even though the business started in 2017?

[AmyT · Accepted solution]

There is no specific amount of gross income (money coming in) or profit that you must meet in order for your expenses to be deductible.  

Important note:  You are only able to deduct your expenses in the year that you paid them - you cannot save them for a future year.  Expenses incurred before you opened the business are considered "start-up" expenses, and up to $5,000 can be deducted now.  If your start-up expenses exceed $5,000, you will captialize (treat as an asset rather than an expense) and amortize the balance.

To get to the input screens for your business (if it is a single-member LLC):

• Once signed into your account, click on Search at the top of the screen
• Input "schedule c" into the search box and hit Enter
• The first link available should be Jump to schedule c - click on this link
• You will be taken to the screens to enter your income, business information, and expenses

When you come to the input screen for your income, simply do not enter anything. Work through the other screens that come up (business information, etc.) and then you will be able to enter your expenses.