Home Based Business Accounting
November 9th, 2010 | 
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Question: Can I claim tax deductions even if my home-based business didn't make a penny?
Does a business, home-based or not, need to have any sort of income to get the tax deduction advantages?
Help me be less accounting challenged.
Answer: If you truly had a business and ran it in a business-like manner, then you do the schedule C and claim the deductions.
Keep in mind, you had to actually be open for business, not just getting set up. Zero income is not a good sign.
If you are starting the business, you had better have the expectation of making a profit within 3 years--the IRS expects you to and you can be audited and deemed a hobby (disallowing the losses).
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Tags: business, home based business accounting, home based business accounting software, management, software, tools, web2.0