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New Member
posted Jun 3, 2019 10:49:52 AM

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

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.

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10 Replies
Expert Alumni
Jun 3, 2019 10:49:53 AM

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.

New Member
Jun 3, 2019 10:49:54 AM

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?

Expert Alumni
Jun 3, 2019 10:49:55 AM

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.

New Member
Jun 3, 2019 10:49:57 AM

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?

Expert Alumni
Jun 3, 2019 10:49:58 AM

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.  

New Member
Jun 3, 2019 10:49:59 AM

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?

Expert Alumni
Jun 3, 2019 10:49:59 AM

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

New Member
Jun 3, 2019 10:50:02 AM

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

Expert Alumni
Jun 3, 2019 10:50:03 AM

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

New Member
Jun 3, 2019 10:50:04 AM

Thank you for all your help.