Tax question, business..?

I started a work-at-home business in April of last year, No employees, no overhead. I bought an initial inventory, and it was a person to person selling business. I invested nearly $5000.00 overall getting set up that includes inventory. I have not returned a profit, I have recently given up hope of making any money, have resigned this business, quitting and taking the loss.
Question is... How and what expenses can I file on this years tax forms or what other tax forms do I need to file a loss and get some of my money back? I do still have some inventory, but instead of trying to sell it, I have been giving it out to friends and neighbors just to get it out of my house.Any help would be appreciated, thanks.

The biggest thing you want to do is keep records of everything. When filing your taxes, you will be considered a sole proprietor. Any income or loss will be reported through your personal tax return. That being said, you will claim $5000 going out and you'll need to claim any income received from selling your inventory.

You can also claim portions of your home (you used your home to work out of), phone, and car (mileage costs - assuming you used your car to get from point A to point B while performing tasks associated with your business).

A tax professional will explain further but that is the basics.

Ron, ChFC

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