I have a real estate license. I did not do any sales in 2021. I still had to pay some mls fees, business lic. fees at start of the year. can I deduct these fees?

Yes, you can. Assuming you will file a Schedule C with your return, reporting no gross income, you can offset your other earned income with the business loss (expense is more than income). 

 

Your self-employment income and expenses will be entered in the Income and Expenses section under the federal taxes tab of TurboTax Online.

 

1. After you sign in to your TurboTax account, open or continue your return
2. Search for schedule c and select the Jump to link
3. Answer Yes to Did you have any self-employment income or expenses?  And answer the questions on the following screens regarding your business activity.
4. When asked to enter your income, follow these steps:
   • 1099-NEC - If you have a Form 1099-NEC, select and enter the information on the form
   • Other self-employed income - Select and enter the total of the following:
     • If you have a 1099-K, the amount in Box 1 Gross amount of payment//third party network transaction
     • If you don't have a 1099-K or 1099-NEC, report your Gross Earnings amount 
     • In your case, don't enter anything in this section.

 

Next, you'll enter the type and amount of your expenses:

 

• When asked if you have expenses, answer Yes
• Answer the questions regarding your work
• Vehicle and Other miscellaneous expenses should be selected as your type of expenses
• Enter your Vehicle expenses if any
• Enter any other miscellaneous expenses you incurred

Thank you for your help. These fees are for MLS dues & Business Licensing.   

Yes, you can deduct your business expenses and loss. 

 

The IRS does like to see a profit at least 3 of 5 consecutive years or they may question your motives and classify your trade as a hobby. 

But there is nothing wrong having a loss when starting up.