What if I don't have any income from my small side-business this year and its all just expenses?

[JDubbs2]

Is it right that those expenses are reducing my W-2 income from my current real job?  I'm creating a new product which I'm hopeful will make money THIS year (2017) but I spent a lot of money ($7,550) last year (2016) developing it - Design of the product, prototypes, packaging development, patent legal fees.

[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.

Since you have negative schedule C income, this will reduce your taxable income.

[JDubbs2]

Thank you, this was VERY helpful.

[AmyT]

Glad to help!