Sole proprietor business disposal

[evmost]

Previously claimed sole proprietor business for multiple years but did not have any income or expenses for 2016. Do I have to prepare a Schedule C or any other forms or can I just file with my standard income taxes as I work for another employer now.

[Coleen3 · Accepted solution]

Since you filed Schedule C in the past (such as sole proprietorship or single member LLC), closing a business couldn't be easier.  TurboTax will ask you if you disposed of your business during the year. Once answered - there is nothing else to do for your income tax return.  No additional forms are needed.

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.

If you are closing a business that had employees or assets, please see below link for guidance:

From <https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Closing-a-Business/INF12028.html>

[cheyenne-sexton1]

This situation applies to my spouse. TurboTax hasn't asked if she disposed of the business during the year. Any tips?

[dtr]

I can't find where to tell it that I sold the business - this doesn't actually seem to be in the system "TurboTax will guide you through the disposition process"

[dabbindan]

once I entered that i sold my sole proprietorship to a non family member, that seems to be the end of it. I don't see where i'm guided to entering the sale profit so i can pay the taxes due on the sale.

[dabbindan]

more accurately, i told tt i sold the business but that does not seem to take me anywhere to report the sale price and calculate the taxes owed.

[ColeenD3]

You will need to file Form 4797, Sale of Business Property. If your sale involves more than just selling of assets, see the following links for more information.

Sale of Business

Pub 544