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Level 1
posted Apr 17, 2023 9:45:06 AM

I had a side-business acquiring and selling sports collectibles. I did not do any of it in 2022. How do I "close" it for purposes of Schedule C?

The collectibles that I did not sell, I plan on keeping. My thought is just to offset the inventory reduction as a "sale" to myself.  Thoughts?

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1 Best answer
Expert Alumni
Apr 17, 2023 10:00:59 AM

If you had no self-employment income or expenses and did not try to work the business during 2022, you can just delete the Schedule C. 

 

The unsold inventory was not deducted in a prior year, so you don't have to account for what you did with it after closing your business. 

3 Replies
Expert Alumni
Apr 17, 2023 10:00:59 AM

If you had no self-employment income or expenses and did not try to work the business during 2022, you can just delete the Schedule C. 

 

The unsold inventory was not deducted in a prior year, so you don't have to account for what you did with it after closing your business. 

Level 1
Apr 17, 2023 10:06:23 AM

Thanks, Julie. Even if I didn't mark that I had "stopped" this business on my prior year return? It was not my intention to not participate in the business this year, but life happened.

Expert Alumni
Apr 17, 2023 10:36:10 AM

Yes, you do not have to "stop" a Schedule C before you stop filing it.  It is based on if you have income/expenses for the business during the year.

 

@afrostpc