Can I deduct business expenses on my Schedule C, such as depreciation since I had no business income in 2018?

[AlanT · Accepted solution]

Yes, getting a business off the ground takes time, and the IRS recognizes this. Even without income, you may be able to deduct your expenses, as long as you meet certain IRS guidelines. Your business loss can offset other income on your tax return and lower your overall tax bill. The test for being able to deduct your expenses is whether you are operating a true business and not practicing a hobby.

[dwoodfin]

TurboTaxAlanT,  This is a photography business which in the past has generated income but due to illness last year 2018 did not generate any income and 2017 generated very little.  Can I still deduct expenses?

[AlanT]

Yes, as long as it is a true business and not a hobby, it is ok to have non income producing year.