I did a significant amount of freelance work for a startup business that failed before they were able to pay me. Is there an way to deduct that loss from my self-employment taxes?
Thanks
-Allan
Failed business losses
Jan 21, 2008
3 Replies
Just don't worry about it. If they didn't pay you, you have no income to report, i.e there IS no tax loss.
ChEAr$, Harlan Lunsford, EA n LA
Right -- but of course, he can deduct his business expenses.
If you never reported the income, you have no loss to deduct. However, you can still deduct your expenses.
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