If your business had no income and no deductible expenses in 2016, then you do not need to report anything on your tax return.
However, if you had start-up costs even with no income, you can
deduct these start-up costs in the year you started your business.
Business start-up
and organizational costs are generally capital expenditures. However, you can
elect to deduct up to $5,000 of business
start-up and $5,000 of organizational costs paid or incurred after
October 22, 2004. The $5,000 deduction is reduced by the amount your total
start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.
Start-up costs include any amounts paid or incurred in
connection with creating an active trade or business or investigating the
creation or acquisition of an active trade or business. Organizational
costs include the costs of creating a corporation.
Claiming your
start-up costs will result in a loss, which helps reduce your taxable income.
In order to claim
these start-up costs on your tax return, you'll need to use TurboTax
Self-Employed (online version) or TurboTax CD/Download (desktop version).
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