If you checked the box in TurboTax, that information is included in the Schedule C worksheet, but the actual Schedule C does not have a spot to indicate that it is the ''final'' return. The number of loose tax ends you’ll have to tie up will vary depending on whether you’ve been operating alone or with a group of employees. TurboTax will ask you if you disposed of your business during the year. If you closed your business just by stopping operations, there is nothing else to do for your income tax return. However, if you sold the business to someone else, TurboTax will guide you through the disposition process and include the transaction on your income tax return.
First, tell TurboTax you have disposed of the business in 2020. This will permit you to “dispose” of any business assets you have been depreciating so TurboTax can calculate any gain or loss on the disposition. You can dispose of the business assets through the Business Assets interview of TurboTax.
Then next year, delete Schedule C from your return.
Take a look at the three scenarios here to get an idea of what you need to do before you delete your Schedule C.
You should keep a record of how much depreciation you claimed (if any) for the home office space. Your basis in the home (your cost) is reduced by the amount you were able to deduct as depreciation. Although it is rare, that may have an effect on the tax consequences if and when you sell your home. If you weren't able to claim a home office deduction in any year or years (insufficient taxable income), the depreciation for those years can be ignored.
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