Taxpayer started a home business in 2006. He had setup cost and also paid for a patent of which the cost is being amortized. He filed a Schedule C for it in 2006.
Then in 2007, he did not really do anything with the business. There is no income and the business is 'inactive' for the whole year and therefore I think we can safely assume that there is no 'profit making' motive at all in 2007. Can he still claim the amortization expense of the set-up cost and the patent cost?
Then in 2007, he did not really do anything with the business. There is no income and the business is 'inactive' for the whole year and therefore I think we can safely assume that there is no 'profit making' motive at all in 2007. Can he still claim the amortization expense of the set-up cost and the patent cost?