Are there penalities when you are self employed and work from home if you don't have enough income to cover your expenses? Is there a timeframe before you have to "break even"?

[JohnB5677]

I have to give a yes and no answer to that.  Different industries will generate profits on different time table.  

If your business doesn't generate a profit within a few years the IRS may classify it as a hobby.

Please see this IRS fact sheet on Is Your Hobby a For-Profit Endeavor?

And also this TurboTax article When the IRS Classifies Your Business as a Hobby

[pictureperfecter001]

Thank you for the information.