Schedule C filing

[Dkaphillips]

As a theatre director, my husband has always filed a Schedule C and taken expenses.  This year he has no income as a director, but still has expenses.  Can we still file a Schedule C?

[BillM223]

Yes.

You are not required to show net positive income every year on your Schedule C. But understand that if you repeatedly show a loss on your Schedule C, the IRS may start to wonder if you are in business for profit or if this is just a hobby.

[Bsch4477]

Yes, you can deduct expenses and have a net loss if he made a bona fide effort to make a profit.  Otherwise the IRS could consider the activity a hobby and disallow expenses.