If I don’t make any money from a home-based business,can I still write off expenses related to it on my taxes?

Question by BizInfoMan: If I don’t make any money from a home-based business,can I still write off expenses related to it on my taxes?
I am asking this for a friend. Basically, when you start a home-based business you tend to incur business expenses that you are technically paying with post tax money from your day job. Can you write off these expenses even though you may not make any money from your home based business in the first year for example?

Best answer:

Answer by ohh_herro
yes, you can write off expenses and even claim a loss. the key is that the goal of the company must be to make a profit and not a hobby.

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