I tried to start a pressure washing business that ended up failing. What additional forms are needed?

[bargar413]

I bought a pressure washer and trailer but never had any customers so sold the washer and trailer.  Where or what do I need to fill out on my tax form? I had a regular job with a W2 but Turbo Tax Free said to switch to Self-Employed but that's not my main job.

[JulieR]

If your business never actually started up and you had no customers/income, you do not have to file as self-employed. However, if you incurred expenses, other than the pressure washer and trailer which you've now sold, you could file Schedule C with your return to report those expenses and take a business loss, but to do so, you would need to upgrade to the self-employed edition of TurboTax.

[bargar413]

So even though I had a regular job and the pressure washing was something that never got off the ground I still need to file as self-employed?

[JulieR]

No, not if you didn't have any self-employed income or expenses.  Then you'll only file your tax return with your W-2 income and you won't need to use TurboTax Self-Employed Edition.

[bargar413]

Sorry, forgot to mention, I filled an LLC, got an EIN and filed to dissolve the LLC toward the end of the year as well as buying the pressure washer. Do I overlook all that since the business went nowhere or is the self-employed editions needed?

[JulieR]

In this case, you did incur expenses that would be deductible on Schedule C (LLC filing fees, business licenses, etc), if you chose to claim them. But again, you'd need to do this using the self-employed edition.  I hope this helps clear up any confusion.  

[bargar413]

Thank you, one last question (hopefully) the pressure washer and trailer we ended up selling for less then was paid, does the sale price also go on the Schedule C?

[JulieR]

You'd list it's purchase and sale under Business Expenses / Assets.

[bargar413]

I put the LLC filing under start up cost but where does the LLC dissolution cost go?

[JulieR]

Any costs associated with the dissolution can be expenses as "Other miscellaneous expenses" under "Less common expenses".

[bargar413]

Thank you for all your help.