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

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

Tax Year 2016: I started as a real estate agent in July of 2016. I did not receive a 1099 because I had no sales. Can I deduct my startup expenses?

I have other income (w2) from my primary job (teacher).

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

Tax Year 2016: I started as a real estate agent in July of 2016. I did not receive a 1099 because I had no sales. Can I deduct my startup expenses?

Yes, your business start date will be the date you were able to receive compensation in your real estate business (whether or not you actually received any). You will  file a Schedule C as a self-employed person.  (This is true as long as you have not taken any steps to become a corporation or are not a multi-member LLC.)

The Schedule C losses will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to the area to enter your business expenses  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

NOTE: "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. "

You can elect to deduct or amortize certain business start-up costs. Refer to chapters 7 and 8 of Publication 535, Business Expenses.  2015

Other business expenses will just be entered in the appropriate categories.


How to get directly to the start-up costs area in TurboTax:

While inside the software and working on your return, type start-up expenses in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to  start-up expenses.  Select that to get to the general area.  



message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies