I spent 180 dollars as start up cost along with.400 dollars for business trips,training expenses
Business expenses are tax deductible, however the expense must be for "business," and you are not being reimbursed for travel by your employer. For example, if you spent $1,000 to go to a conference that lasts 2-days. ALL of your expenses are related to the conference, i.e, food, hotel, air, etc. went towards the conference, all is deductible. If however, you spent an extra night, then only 2/3 of the expenses are deductible. It is also a red flag for a possible audit.
Hope this provides some help.
Although you may not be making a profit, the issue is strictly about costs and time relating to your training or business related issues. Many, many years ago, I joined a program similar to Amway. I never expected to make money on my "investment," what I was doing was purchasing a product that I would have paid significantly more for (retail), I joined the business only to get the products at 50% off. The person who signed me up told me that I would be able to write off any trip I went on as long as I mentioned the product to someone. Sounded great, my investment (about $200), purchase the products at 50% off "sticker price," and free vacations - all would be for business, I would mention the product to somebody.
What a deal...I will make the investment price back in no time...and I get a box of cool products for my investment...AND I could write off the cost of the samples.
Sounded great...how can I go wrong?
I learned only after reading IRS documents, that
-I could not write off the price of the start-up box, as in converted to my use (in fact it is arguable that I made a profit on the box)
- My business trips required that I could document how I spent the time on my new business. It is much more than dropping a business card into a fish bowl. I could write it off is I spent 8-hours a day working.
- I was told that a room that I had my computer in was deductible as an office...however, I also had a television, surround sound, etc. and our family used that room as our "family room," another tax deduction taken away.
IN years thereafter, I did have a room that was used solely for my workplace. I was living in Washington State, my home office was in VA. Most of the time, I was traveling for work, so my office was seldom really used, however, it was for my office only. Whenever I was at home and worked, I had a room that was my office, and totally deductible. So was the percentage of electricity used, etc. (As I traveled so much the room would have required a log, indicating my actual use of this room that was only used for my work,) After reading all of the requirements, I likely would have deducted everything...I chose not to do so. The deduction was not that great, and the documentation was a nightmare to keep up with.