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If your did not have ANY business transaction - and the business has NOT actually started - you will answer NO on that question - and would not need to to report anything on your tax return.There will not be any affect on your personal tax return.
what kind of loss are you going to claim?did you have any business related expenses?
These are all startup expenses - they are NOT deducted unless the business started.All startup expenses must be capitalized.
If you NEVER start the business - how to handle costs depends on your specific situation.
- if you are searching for a general business possibility without any specific business in mind - the costs are considered as personal costs and are not deductible.
- if the costs are to start a specific business - these are “investment expenses” and may be deducted on schedule A as investment expenses.
- If you purchased any business assets - the cost of such assets is a capital expense and you can claim it as capital loss when you dispose these assets.
Please be aware that if you paid someone in teh course of your business - and that amount is above $600 - that payment must be reported on form 1099misc.