|
That being said . . . Taking business deductions especially a home office deduction, during any year in which the business has mimimal revenue is like waving a red flag in front of a bull. It will almost surely result in an IRS audit and then you'll be expected to produce receipts for every pencil that you bought.
IRS agents are not stupid. If you do not have any revenue, they are going to assume you are making it sound like you have a business in order to deduct personal expenses from your income taxes.
Try to delay your expenses whenever possible until such time as you have some revenue to offset it against.
|