Yes
,
you can still claim business-related expenses, even though you had no
revenue, but only expenses paid for the current tax year. (2017) This
flip side of this is that you couldn't claim expenses in 2018 that you paid for
in 2017.
You can deduct
expenses as long as you can prove that you opened or were in business in the
year expenses were incurred. To be deductible, a business expense must be both
ordinary and necessary.
Also, the IRS
expects that if you start a business, you intend to make money at it. If you
don't, your business is likely to be a hobby, in which case you can only claim
expenses to the extent of your hobby income. To determine if your business is a
hobby, the IRS looks at numerous factors, including the following:
· Do
you put in the necessary time and effort to turn a profit?
· Have
you made a profit in this activity in the past, or can you expect to make one
in the future?
· Do
you have the necessary knowledge to succeed in this field?
· Do
you depend on income from this activity?
· Are
your losses beyond your control?
As a Business,
you are considered to be self-employed. You report both income (if any) and
expenses on Schedule C/Business Income & Expenses. You will need to upgrade to TurboTax Self-Employed edition to claim the expenses.
TurboTax will
guide you step by step through the process.
·
Type in "business expenses" in the search box in the
right-hand corner of your screen
·
Click jump to business expenses.
