Can I include the start-up expenses of a c corporation I started in January of 2016 on my personal return if the business never materialized and realized no income?

[ed3]

Expenses that were incurred include virtual office space, Web development, travel, meals, conferences, etc. I incorporated in Delaware and am the sole person involved. I was expecting to attract venture financing. After a few months, I realized it was a mistake to incorporate so soon.

[RichardK · Accepted solution]

You include the corporate expenses on the corporation return. In a C corporation the expenses do NOT pass through to the shareholder. The shareholder will realize income from dividends received, or gain or loss from the disposition of the stock, and realize loss if any loans  to the corporation becomes worthless.

When you incorporated, you purchased stock from your company. When the company goes out of business that money is a capital loss, click here for IRS publication 17, and search for worthless, for instructions of how to handle that loss (worthless securities are reported on Form 8949).

In addition to purchasing stock, you may have loaned the company money, if you can't collect on that loan, it may be a non-business bad debt, which is discussed in IRS publication 550, which you can access by clicking here.