Yes, but... The reality, which I discovered painfully late, is that no one, especially the IRS, wants your losses. As long as you and your business are profitable all the deductions/losses math works great. However, if you are loosing money you get no benefit from them. (If you made no money how much tax do you save by deducting the interest you paid on your mortgage? Ans. = Zero.)
When you read about deducting business expenses, charitable contributions, interest expenses etc. they never mention that you only benefit if you had income.
