Wife started new side job as a realtor, had lots of expenses but no earnings in 2021. Should I even report this new job in 2021? Can I report 2021 expenses on 2022 year?

[MayaD]

Your wife can't deduct her 2021 expenses on her 2022 return. Expenses are deductible in the year it was paid.

Your wife can deduct her 2021 expenses even if she 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. An expense does not have to be indispensable to be considered necessary. Irs.gov

To report 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.