Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Sep 3, 2021 6:06:59 AM

Can I claim costs associated with running a business if I did not make any sales or income? The first year was spent developing the product.

0 1 602
1 Replies
Level 3
Sep 3, 2021 12:46:47 PM

You can claim them as losses against profits made from other businesses, or against income from employment.  The IRS understands that it takes time to develop a business.  If you have no profit for more than three years, you will be considered having a hobby and not a business.