Is this considered a business?

[ALIKA027]

My son is an athlete, and the only income he had was from the financial support he got from his federation. And we got tax forms from that

Last year, he tried to jumpstart an epoxy business. Bought equipment and supplies, did installation for family and friends for free (to build portfolio), created a website. He incurred expenses at this stage -- but no income.

However, he had to put the business on hold when he was named to be Team USA and competed in several international assignments. And having an epoxy business doing garages and kitchens will take him away from training, which his coaches won't allow.

My question is: can he deduct as business expenses the materials and labor that he incurred at this time?

[Vanessa A]

If he never actually opened for business, then no, he cannot deduct the business expenses.  Also, when you are in business, your personal labor is never deductible.  You cannot consider it as advertising or donations.

If he would keep the equipment and open for business this year, or next, he could then consider the expenses to be start up costs.