A new trade or busienss needs to be past the start-up phrase and doing all the things it would normally be doing. Technically you would not need revenue. But that would seem sort of unusual. The exception and not the rule.

I have not yet read anything that says you have to have revenue to qualify, only that you started after February 2020 date and less than $1 mil in gross receipts. If I hired someone in Q3 of this year, in order to grow the business and generate revenue, would I qualify for the recovery startup business credit?

(If it matters based on aggregation rules, I also have 1099 income as a sole proprietor for the past 4 years.)

Thanks again for being an educator.

If you “began carrying on the new trade or business after February 15, 2020” and your activity rises to the level of a Section 162 “trade or business”… meaning you’re motivated by profit and display continuity and regularity, maybe it does.

BTW, you won’t have wages paid in your rental. So you’d need another small business with wages paid to nonfamily member employees to get credits.

This earlier blog post about Section 199A and real estate trades or businesses might help you with Section 162 threshold question:

http://evergreensmallbusiness.com/section-199a-rental-property-trade-or-business-definition/

Question: what if you moved and converted your primary residence into a rental, employing a property management agency? Would that be a new business?