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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?

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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.

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