Sale of Business Property - where to enter in Proseries

[ptax255]

Hi, client has had business expenses since 2022 trying to build and market an app that never launched. In 2024 this was abandoned. None of these expenses (mostly marketing and office supplies and software) were previously deducted so now, if I'm not mistaken, they would be reported on form 4797 as a capital loss. Where in proseries do I enter this? Schedule C? As an asset? If the latter - what type? Thanks!

[Skylane · Accepted solution]

"Caution Will Robinson........."

No  for Sch C b/c there was no active business. 

Start-up costs for a business that didn't start are generally considered personal and are not deductible.

If there were capital expenditure; i.e. equipment purchase you may be able to take a capital loss on Sch D but office supplies and marketing expenses would be considered personal expenses 

. 

[BobKamman]

I agree with @Skylane , although as usual it depends on the facts and circumstances and how adept one is at twisting them.  However, I had no idea where this "caution" quote came from, and Google tells me that it should be "Danger . . ."