I am not sure how to file taxes for my small business that I started at the end of 2018. We did not have any sales until 2019, however, we had $3500 given to us as a gift to help us with startup costs. I need to know what I need to do to file the taxes for 2018.
If your business was operational during any point in 2018, even though you had no sales/income, you can file a Schedule C with your return to report any expenses you incurred. If, however, the business did not officially open until 2019, you can wait to file Schedule C with your 2019 return.
The gift you received is not includible as income on your return, but, if the gift covered some of the start-up expenses, you will need to reduce those expenses by the amount of the gift.
If you decide you need to file a return for this business in 2018, you will enter your business expenses under Income & Expenses / Self-Employment / Income and Expenses, then follow the programs prompts.
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