turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

TC3
New Member

Tax Year Prior to 2020: Self employment

Hello everyone,

I was wondering what I should do as far as filing a schedule C this year. This is the situation. I have a regular full time job. I was going to do a small side business venture with someone I know. I have a contractor's license that he needed for him to continue in his side business. I purchased bond, insurance and a few tools. He was suppose to get his projects through another party. The other party's computer system crashed and he did not get any projects last year. So my question is should I still file a schedule C this year since I purchased things for business that was not done?  Thanks in advance for any feedback.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
KarenL
Employee Tax Expert

Tax Year Prior to 2020: Self employment

Yes, you can file a Schedule C for your expenses. That said, if you are just starting this "business" venture and expect to make income in 2019, you may want to hold off until next year and consider some of these expenses as Start Up costs.  If that applies to your situation, it would be deducted against income that is potentially taxed with self-employment taxes (in addition or ordinary income taxes).  

 

"Business start-up and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business start-up and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. Any remaining costs must be amortized.”

 

Start-up costs include any amounts paid or incurred in connection with creating an active trade or business or investigating the creation or acquisition of an active trade or business.   Organizational costs include the costs of creating a corporation."

 

Note: You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question