When you log into Turbo Tax, navigate to Self-employment income and expenses. You used Turbo Tax in the past to report this business, you should have a General Information Tab that you can edit and report that you stopped the business in 2019. ,
As far as inventory, this is a little tricky because the best rule to use is to report your Cost of Goods sold and your inventory balance must be zero as of 12/31/2019. Here is the correct formula for entering Cost of Goods Sold. To reach this, as you scroll through the expense portion of Turbo Tax, scroll until you find inventory
- After going through the preliminary screens for inventory, you reach “Do you have inventory to report" just follow the prompts to enter your inventory information.
- Beginning of 2019 – the same amount of your ending inventory for 2018
- End of 2019 – Zero
- On the following screen, “Tell Us the Cost of Your Goods”
- Whatever the amount of your ending inventory is, you will enter that amount as Purchases Withdrawn for Personal Use to zero out the inventory account
Just one last note, if your inventory is unusable by you for future use, you might claim this as a miscellaneous expense if the amount is small. This is not a recommended practice approved by the IRS so exercise caution, especially if the remaining inventory is significant.
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