Sunday, August 2, 2009

Can a person file a Schedule C if there was no income but had expenses?

If one earned schedule C income in 2006 and no schedule C income in 2007 but had expenses related to self employment, can that person file a schedule C which would reduce personal income because of the loss%26gt;

Can a person file a Schedule C if there was no income but had expenses?
If you were engaged in the same activity as you had in 2006, with the intention of making a profit, you can file Schedule C in 2007 and take expenses.





As mentioned, some expenses cannot be taken in a year when there is no corresponding income (depreciation of your home office is one example).
Reply:Schedule C is:





Profit and Loss from a Business





Yes you can file if you had a loss.





However the loss is limited by complex rules.





Use tax preparation software.


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