For a consultant who charges an hourly rate and working as a sole proprietor, can I take a loss for work done on projects that was rejected by the client? I invested about 250 hours on a project that didn't pan out and this had a huge impact on my bottom line in 2015.
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Tax Professional Answers
Edward Bender
A sole proprietor can take a loss for the supplies and other items he puts into a project, but not his time. While a corporation or partnership may write off time for an employee for a project that was not completed, a sole proprietor is not truly an employee; therefore, his time is not considered a write off.
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322 weeks ago
Question Owner
Thanks. All the more reason to form a corporation if I go that route again.
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322 weeks ago