I started by own business in 2016 and I have a question about taking a business loss deduction. Since my start-up costs were more than my income would I qualify for a business loss tax deduction?
You should qualify for a business loss deduction because you can deduct a limited amount of business expenses including:
- Start-up costs
- Expenses for creating an active trade or business
- Expenses for investigating the creation or acquisition of an active trade or business
You can take these types of business loss tax deductions in the year your business was started. You can deduct up to$5,000 in expenses for your business. You’ll need to reduce the $5,000 cap dollar-for-dollar by the amount the start-up costs are more than $50,000.
You can amortize the remaining start-up costs over 180 months starting with the month your business begins.
Learn if you can claim your parents on your taxes with help from H&R Block.
Does claiming multiple dependents increase your chances for an IRS audit? Learn how dependents affect your tax return.
Learn whether you can claim the earned income tax credit if you are separated from your spouse with advice from the tax experts at H&R Block.
Determine which tax filing status to use if your same-sex partner passes away. The team at H&R Block is here to help.