Closed Business in - Please help

[Suttlejj]

Due to COVID, I had to decide if my business could remain open or should it close.   Unfortunately I had to closed my business in Dec 2021.   During 2021,  the business did not have any revenue, however I had continued maintenance expenses on the business which  I continued to pay.  My questions is:  Am I able to  claim  a new A/C unit installed in 2021 and other maintenance work done on the building for example plumbing etc.. ?

Are there separate forms/ processes for business's which closed in 2021? 

Thank you

[ColeenD3]

No, if you have a Schedule C, you simply indicate in the interview process, that you ceased doing business in 2021. If you had an LLC, you would need to close it with the state.

You can take expenses you incurred while trying to keep your business afloat. but you can only take one year's depreciation amount on the A/C unit.

However, the IRS requires that you show loss after loss and still maintain a business status.

The IRS safe harbor rule is that if you have turned a profit in at least three of five consecutive years, the IRS will presume that you are engaged in it for profit.