I received an art grant and I used it to purchase a lot art supplies and equipment. I did sell some of my work but only made about $2500 all year, and my grant was $5000. I invested the entire thing plus some so I really didn’t profit and don’t want to pay taxes on all this money. Does it make sense to start a side business before the year ends so I can write off all my expenses? I want to just start a sole proprietorship. And hopefully next year I will actually make a profit.