Post # 1
I had my ‘own’ business earlier this year. I was trying to start a brand partner business and it failed. I kept all of my receipts of products that I purchased for the company. But I only earned $60 which does not grant me a 1099 or anything obviously. So, can I still write those expenses off? How about my mileage? I plugged it into turbo tax under employment expenses. Turbo tax says its ok and that my audit risk is low.
So anyone do this stuff for a living?!?! Thanks!
Post # 3
@jesssamesssa: Did you incorporate the business or are you a sole proprietor? I think it may be best to use an accountant in this case. Any complicated tax issues I use an accountant, otherwise I do it myself.
Post # 4
@jesssamesssa: I am a CPA, and while I don’t know enough specs about your individual case – you can only deduct losses to the extent of your gains in a particular tax year. You can carry forward your loss though. Basically, you would only be able to deduct $60 as that is all you made – you can’t profit tax-wise off your expenses.
However, what might bright up a flag is your disclosing income of $60 without a 1099 – the IRS may wonder if there is more. I would definitely check this out with a professional who knows your personal situation if your expenses are material – you don’t want to lose out on that deduction (and the carryforward effects).
Post # 5
@MrsNewDay: I made $60, I spend $636 in getting my business going and used 1200ish miles on my car. That is pretty much it.
Post # 6
@jesssamesssa: If you didn’t incorporate the business and have not employed anyone, then you would be considered a sole proprietor. Therefore, you need to fiill out the Schedule C worksheet. (Even if you only profited $60)
Post # 7