Have a Tax Question? Ask a Tax Expert
Yes, you should report your income and business expenses on Schedule C. The loss will reduce your taxable income.
What type of business is it?
was an IT company
Did you have any revenue?
i have ~4k that I ended up refunding
To determine whether you can deduct your expenses:
Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.
In order to make this determination, taxpayers should consider the following factors:
If you decide to report and take the deductions for your expenses, make sure they don't seem personal in nature.
ok, i guess my reservation is that while I can prove the money was spent to start a reasonable business, the costs were incurred during startup and the company was only 'open' for two months before i deemed it too costly to continue. i would have required more capital to get it into a profitable state.
You are entitled to report the loss, but it will increase your chances of audit.
I need to change computers and close this chat. If you need additional information, you can Reply again later.