In 2018 I pursued a business as an Ind Consultant, but had to get a FT job. While I'm still a consultant, I am not pursuing a business now. Do I say the business ended?

[kuhncrew]

I have business expenses for 2018 and will have a loss for tax purposes, but stopped pursuing the business aspect because I had to get a full-time job. I am still registered as an Independent Consultant with the company and still have sales every once in a while (but am not making a profit), and am not actively pursuing as a business. I do not expect to make a profit in 2019 or beyond. Should I check that the business ended in 2018 or not? If I do not say the business ended, will I need to continue reporting everything in future years?

[Cindy0H · Accepted solution]

You can end the business anytime you want. The advantage to keeping it going is being able to deduct expenses that go along with the business. That can lower your taxable income. Some things like taking the deduction for home office or self-employed health insurance are limited to the net profit of the business. You could try one more year and decide to close it in 2019. The IRS likes to see businesses making profits but a couple of years without a profit will not raise any red flags.

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