Business Expenses?

Feb 21, 2021 Last reply: 5 years ago 1 Replies

Retired client is now self-employed part time for several years as a translator, English to Spanish. She works from home through several translation services which assign her to schools to translate for parents and to hospitals to translate for patients. The services send her 1099-MISCs at the end of the year (this year, would have been 1099-NECs).



In 2020, business dried up. Schools closed and she did not want to enter hospitals or medical facilities.



She had a couple of items on depreciation schedules, both of which are almost fully depreciated. I understand depreciation cannot be deferred, but with no income in 2020, can depreciation still be taken as an expense? It might be her only expense for 2020. The total amount is probably only about $300.



If the situation improves in 2021, she hopes to return to this job - probably towards the end of the year.


If she intends to continue the business, she can take the expenses even though she had no income. It would help her tax situation should the IRS contest, if she could demonstrate efforts to seek out new assignments even if she doesn't accept them due to health and safety concerns.

Ira Smilovitz, EA Leonia, NJ

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