We have closed our clothing business in 2019.
I understand that things like mannequins and clothing racks are related to "office expenses," and I did write them off as "business expenses" in previous years.
My question is: Do I have to report selling these "business expense" (mannequins/racks/etc)....when closing the business?
If so, which form do I use?
I sincerely thank you very much for your time and assistance on this, and for this amazing service you provide.
As part of closing the business you would have reported the sales of the assets/furnishings/and such on the final Sch C. If you did not then you technically converted them to personal use and you will need to report the sales of such items on the Sch D ... since your basis in them is zero whatever you sold them for is a capital gain.
Thank you so much for your input.
I am in the process of filing the final Schedule C for that business.
Forgive me for asking this (super new to this), but to clarify:
To report it on my Schedule C, do I just report it as income? If so, where would the option be to report the loss of these sales based on the actual amount paid for? Or is that not an option?
Thanks again for your time and advice.