Q&A: Is it worth claiming $4000 in expenses for a home based business when revenue was only $150? ?

Question by AB: Is it worth claiming 00 in expenses for a home based business when revenue was only 0? ?
My wife started a home based photography business but only had $ 150 in revenue. Does anyone know if I can state these on my tax forms, or I am wasting my time since there is little or no revenue?

Best answer:

Answer by MP
You should be able to deduct business expenses from a home-based business as long as they directly relate to that business. So, yes you should state both the revenue and expenses on your tax forms to claim your deductions. If you expect increased revenue over time, you can do this. If you really don’t expect anything more than $ 150 per year, you will likely have your deductions kicked out since the IRS will consider this a hobby not a business. Depends on your situation, but yes, those expenses can be deducted. Just fill out the business revenue/expense forms with your return.

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