Should I claim all my business expenses even if my expenses are higher than my income ?

[timelystaging]

My business involves buying inventory almost every time I get a job. Sometimes I don't  have money in my business account so I use my personal income . which resulted  into maxing my credit line . I just looked at my accounting system and my income is $20k+ And my expenses are around $18$ . I still have a bunch of receipts I need to enter and I think my expenses will be higher than my in income.
1. Do I claim all those expenses?
2. As sole proprietor who is employed full time as well, what do I have to claim and not ? should I claim all the money I put into my business? Please advise . I have a bunch other questions before filling

[jayneway · Accepted solution]

You can claim all business related expenses. as for inventory that which has not been sold. you would have to under cost of goods sold. you can go to this by going to top left under view drop down to forms, click on schedule C scroll down the form to part III cost of goods sold. you will put in your purchases for resale and ending inventory at year end. beginning inventory assuming you did not do this last year 2015 tax return would be 0. as for money you personally put into your company you can not expense. either the company owes you this money and or you actually used your personal cash for business expenses. then that's where the money is used and actually receipts and business expense you write off. Yes your expenses can exceed your income.