home business opportunity
moneyreligion asked:

Does a business, home-based or not, need to have any sort of income to get the tax deduction advantages?

Help me be less accounting challenged.



**sarz** on 21 April, 2009 at 4:34 pm #

I was always under the impression that the less a business made the more you can claim at tax time. My friend is an accountant and she always tells me to hide a bit for this reason.

v b on 24 April, 2009 at 11:19 pm #

If you truly had a business and ran it in a business-like manner, then you do the schedule C and claim the deductions.

Keep in mind, you had to actually be open for business, not just getting set up. Zero income is not a good sign.

If you are starting the business, you had better have the expectation of making a profit within 3 years–the IRS expects you to and you can be audited and deemed a hobby (disallowing the losses).

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