Business expense paid out of pocket for biz sold in prior year

[mmarc2000]

I sold my small business in 2019 (an LLC), filed the final 2019 return (Form 1065) and reported that on my 1040. Over the years I occasionally paid business expenses out of pocket and deducted those on Schedule E of my 1040. In 2020 (after the business was sold) I personally paid some final business expenses. Can I deduct those on Schedule E of my 2020 Form 1040? Thank you!

[ThomasM125]

Yes should deduct those expenses on the 2019 tax return. You are not supposed to deduct them in a year that the business was not open. You will need to amend your 2019 tax return to take the deductions.