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How do I report expenses for a company i started in late 2020 but i didnt receive any income in 2020?

 
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3 Replies

How do I report expenses for a company i started in late 2020 but i didnt receive any income in 2020?

On a schedule C if sole proprietorship.   You can apply the loss against other profitable business income or against W2 income.  You can also carry forward the loss.

How do I report expenses for a company i started in late 2020 but i didnt receive any income in 2020?

you can not carry forward the loss unless you have a net operating loss. generally, that would be if your adjusted gross income is negative. if you have an NOL you must make an affirmative election in Turbotax to carry it forward. fail to do so and the NOL would have to be carried back to 2018 and if any remains to 2019 then to 2021it's unlikely you have any carryforward if AGI is positive, if you have an NOL it's your choice to carryback or carryforward and make the cf election if that's what yo choose.

Turbotax does not automatically calculate an NOL.

you can use form 1045 Schedule A to compute if you have an NOL.

read the instructions so you understand what are business items and what are not.

https://www.irs.gov/pub/irs-pdf/f1045.pdf 

https://www.irs.gov/pub/irs-pdf/i1045.pdf 

 

 

 

 

Hal_Al
Level 15

How do I report expenses for a company i started in late 2020 but i didnt receive any income in 2020?

It depends on what expenses you have.  If you have are actually "in business", you may deduct the expenses on Schedule C, even though you have no income.

 

If you only have "start up" expenses and di not yet have an operating business, in 2020, you must capitalize those expenses and amortize (spread out the deduction) over a period of 180 months, starting from the first month that your business opens.

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