No income for new business but expenses

[Julienm]

Hi.  First time filer here.  I had a w-2 job in the medical field along with my new business between 1/2021-6/2021.  I stopped working in the medical field in 6/2021.  I made $16,500 with the w-2 job (i've already uploaded the w-2 info into turbo tax.

I have start up costs for my business but have yet to make any income.  How can I be reimbursed?  My spare bedroom in the home I own is my office.  I have an LLC for Wholesaling.  I am a licensed Realtor.  Thank you for any help.

[LenaH]

You can deduct some of your expenses as start-up costs. Startup costs come from investigating the creation or acquisition of an active trade or business. They are paid or incurred before the business begins.

Examples include:

 - Market research

 - Travel costs

 - Salaries

 - Consulting fees

 - Accounting and legal fees

 - Pre-opening advertising expenses, and

 - Overhead

How these expenses are handled:

Up to $5,000 of startup costs paid or incurred can be deducted if the total startup costs incurred don't exceed $50,000. An election can be made to amortize costs in excess of $5,000 over a period of 15 years.

If total startup costs exceed $50,000, the excess over $50,000 reduces the amount you may deduct. For example: If you incur $52,000 worth of startup costs, you can deduct $3,000 ($5,000 - ($52,000 - $50,000 = $2,000)) and amortize the remaining $49,000 over at least 15 years.

To enter your startup costs, please follow the steps below: 

1. Open your return.
2. Search Schedule C.
3. Click on the Jump to link.
4. Click on Add a Line of Work or Click Edit next to your existing Schedule C. 
5. Follow the on-screen instructions.
6. On the page titled, Your Info, scroll to the bottom and click on Looks good.
7. On the page titled, Let's enter your income, click on Skip for Now.
8. On the page, First, select the expenses you know you had, click start up costs.
9. Scroll down and hit continue.
10. Follow the on-screen instructions.
11. Click start next to Startup costs.
12. Answer yes to the question, Did you have start up costs?
13. Follow the on-screen instructions. 

In addition, since you are self-employed, housing-related expenses such as mortgage interest, rent, utilities, repairs, and depreciation for the portion of your home or rental that you use to run your business are allowable expenses under the home office deduction.

To enter the home office expense, please follow the steps below:

1. Open or continue your return.
2. Search for Schedule C and select the Jump to link in the search results.
3. Answer any questions about your business until you get to the Your self-employed work summary screen. Select Edit or Review next to your business.
4. You'll be asked What kind of expenses did you have for [type of work]? Select Home office. You can also select any other expense categories that apply to your business. Select Continue at the bottom of the screen when you're done.
5. On the Here's your [type of work] info screen, scroll down to the Expenses section, and select Start next to Home office.
6. Enter the info about your home office.

Lastly, after you started your business, you would enter your expenses in the expense categories of her Schedule C.