Does my business have to make any money for me to take tax deductions?
I set up a business that has brought in zero amount of money. I have invested money in materials to do this business and I am wondering if I can take ...
I set up a business that has brought in zero amount of money. I have invested money in materials to do this business and I am wondering if I can take business tax deductions when no income can be reported from it.
Yes, you can deduct business losses from your personal income. Typically speaking, the IRS will allow you about 3 years of losses after start up before they get suspicious and start auditing you. However, if something doesn’t add up, they could audit you at any time. Just make sure you have all the proper documentation so that if you are audited, you can show that your deductions are legitamate.