No revenue but expenses

Discussion in 'Taxes and Accounting' started by dcwriter2, Oct 10, 2021.

  1. Bona fide writer here, been on staff here and there and freelancing throughout my life. Been taking home office and other deductions year after year. No issues. Profit goes into a solo 401k. Yada yada. But this year I will have no revenue — let’s just say I’m working on a long term project. Now, when it comes time to file next year, can I show zero revenue and, say, 10k in expenses, a loss, then deduct the 10k against my capital gains and my wife’s salary? Isn’t there a rule stating I only need to show a profit in three of the last five years?
  2. Girija


    There are ppl qualified called CPA who can analyze ur specifics and provide accurate response. Are we talking about business and if so the burden is to prove legit business which threw loss vs hobby. If later no. You can file 5213 and irs will wait for 4 years to make a determination. If it is a non business situation then you may not If you file separately. If you file jointly then whether you earned or not is irrelevant.
    How can there be a profit when income is zero. Not getting that part. Talk to a cpa.
  3. I recall that it's sometimes possible to take losses over a few years if you can't use them all this year, but Girija is right - talk to a professional in your state.