Last year (January 2011-August 2011) I hired a company in Europe to build me a software product, which I intended to resell as a for profit business. I am a us citizen and have lived and worked here my entire life.
I spent $20,000 on this venture, and it was a complete and utter failure. All the while, I was working a full time job. I have no record of the business being established (though I did get a business name), and have since closed the business banking account There is very little evidence that the "business" ever existed. I do however, have record of all the payments I made, which amount to $20,000. I say "business" because I never even turned a profit.
When tax time came around for 2011, I had no idea I could deduct these expenses from my overall tax bill. I am wondering now if when tax time comes around this year, I can deduct those losses from my 2012 bill. I know I need to speak to a lawyer and accountant probably, and I will, but any general advice would be very much appreciated.
(And yes I know it was idiotic overlooking the deductions last year but I am just a young guy and had no experience.)