I put my money of around $5000 for developing a Website.

However, Website didn't pick up. So I dropped the project.

Whether the money invested can be shown as business loss in the Tax?

1 Answer 1


Definitely, business losses can be claimed insomuch as they come from legitimate business expenses (plenty of resources out there for what are and aren't valid business expenses). There is a chance when claiming business losses that the IRS will want to classify the business as a hobby which disallows losses (some exceptions). You basically have to prove a valid profit motive if the IRS hassles you about business vs hobby distinction.


You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .