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Level 3

How to depreciate assests when closing business in 2017 taxes

 
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How to depreciate assests when closing business in 2017 taxes

I assume you are looking for Form 4562, Depreciation and Amortization.   If you don't have asset additions in the year, you won't have a Form 4562.  But, your depreciation of assets from prior years will continue to calculate.  You should see that on you Schedule C for the business you are closing.

 

Also, you should note that because you are closing the business during the year, you will need to visit each of the business assets, and report that there was a disposition of the asset during the year.

 

See this TurboTax article on Closing a Business for a good overview.

 

 

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Level 3

How to depreciate assests when closing business in 2017 taxes

I do not see the form 4592 I usually do. I am closing out a business in 2017 home and business TurboTax.  I have went through step by step never came to maybe I missed somewhere. I thought I could finish depreciating out my assests?

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Expert Alumni

How to depreciate assests when closing business in 2017 taxes

I assume you are looking for Form 4562, Depreciation and Amortization.   If you don't have asset additions in the year, you won't have a Form 4562.  But, your depreciation of assets from prior years will continue to calculate.  You should see that on you Schedule C for the business you are closing.

 

Also, you should note that because you are closing the business during the year, you will need to visit each of the business assets, and report that there was a disposition of the asset during the year.

 

See this TurboTax article on Closing a Business for a good overview.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Level 3

How to depreciate assests when closing business in 2017 taxes

Yes that is what trying to finish out the depreciation of those asserts. Not sure why not appearing. I transferred 2016 I know it is on there.
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Level 10

How to depreciate assests when closing business in 2017 taxes

You "edit" each asset and indicate what happened to those assets (if they were sold, or converted to personal use or whatever else).  Then answer all of the followup questions.

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Level 15

How to depreciate assests when closing business in 2017 taxes

Closed SCH C Business

You need to report your business as "sold or otherwise disposed of".

Start working through your business "as if" you still own it. On the 2nd or 3rd screen in select the option for "I sold, closed or otherwise disposed of this business in 2019". If prompted for the date, enter the day after you last day of business in 2019.

If your business had no income in the tax year, you can not leave the business income section blank. You 'must' enter a digit, even if that digit is a ZERO.

If you had no business expenses, then you can leave that blank and don't even have to work that section through, if you don't want to.

If your business carried an inventory, the end of year (EOY) inventory must be zero. If it's not, then in the COGS section (Inventory/Cost of Goods Sold) indicate that you removed the entire remaining inventory for personal use. That effectively makes your EOY inventory balance, zero. If you sold the inventory as a part of a sale of the entire business to another, then you will report all the remaining inventory as sold and allocate a portion of your sales price to your COGS as appropriate.

If your business had assets, then you must show the disposition of those assets. In the Business Assets section work through each individual asset on at a time, and select YES on the screen, "DId you stop using this asset in 2018?". Then on the next screen, "Special Handling Required?" if you sold the asset, select no and you will be prompted for your sales information on that specific asset. If you did NOT sell the asset, click the YES button. You must do this for each individual asset listed, even if it's already fully depreciated.

If you claimed any vehicle expenses in your business at any time from the day you opened your business, then you must most show the disposition of that vehicle. Work through the Business Vehicle Expenses section and indicate that you stopped using that asset in the business, when prompted. Then show your disposition of that vehicle. Most likely, you'll indicate that it was removed for personal use.

Once you have done all the above, that will make the 2019 tax year the last year you will file a SCH C for this specific business.

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