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shiftededge
New Member

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.

 
1 Reply
DanPaul03
Level 3

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.

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.

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