Updated 10 months ago on .
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Made no profit this year should I still file taxes?
I started dabbling in wholesaling a few months ago,I do not have an LLC. I haven't made any profit yet and I'm wondering if I should still file taxes for my "business ".
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Michael Plaks
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
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I assume that when you say "I made no profit" you mean you did not have any deals. A more accurate way to describe it is "I received no income" - because you can have deals but still have no profit if your expenses are greater than your income.
If you were actively looking for deals (and can document it) - as opposed to merely planning to start later - then you file Schedule C and claim business expanses such as marketing, driving, technology and so on.
Warning: Schedules C claiming expenses without any income are not against the rules, but they are IRS audit flags.
If you were actively looking for deals (and can document it) - as opposed to merely planning to start later - then you file Schedule C and claim business expanses such as marketing, driving, technology and so on.
Warning: Schedules C claiming expenses without any income are not against the rules, but they are IRS audit flags.