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cooganjr
New Member

Inherited Schedule C business in mid-Dec 2016 -- 1) filing 2016 Sched C if no income/expenses yet? 2) do I carry forward their NOL?

Reposting as question cut off before:  Relative had Schedule C business that I inherited and owned only last two weeks December 2016.  1) I'll file a 2017 Schedule C, but if no income/expenses for business in last two weeks 2016, do I need to file Sched C for last two weeks 2016?  2) Relative had Net Operating Loss (NOL) with business/Schedule C -- does it die with them or do I carry the NOL forward against MY taxes/Schedule C?
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LudwigVan_fan
Level 8

Inherited Schedule C business in mid-Dec 2016 -- 1) filing 2016 Sched C if no income/expenses yet? 2) do I carry forward their NOL?

Sorry for your loss.

1.   If there was no income and no expense in the last 2 weeks of 2016 while you owned the business, I would say you wouldn't have to file the Sch C for 2016.  There would be no tax effect and there would be no entries.

2.  The NOL follows the taxpayer.  If would be used on the relatives final 1040 (which if they passed away in 2016, would be the 2016 1040).

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

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2 Replies
LudwigVan_fan
Level 8

Inherited Schedule C business in mid-Dec 2016 -- 1) filing 2016 Sched C if no income/expenses yet? 2) do I carry forward their NOL?

Sorry for your loss.

1.   If there was no income and no expense in the last 2 weeks of 2016 while you owned the business, I would say you wouldn't have to file the Sch C for 2016.  There would be no tax effect and there would be no entries.

2.  The NOL follows the taxpayer.  If would be used on the relatives final 1040 (which if they passed away in 2016, would be the 2016 1040).

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
LudwigVan_fan
Level 8

Inherited Schedule C business in mid-Dec 2016 -- 1) filing 2016 Sched C if no income/expenses yet? 2) do I carry forward their NOL?

I forgot to mention, depending on the business, how the inheritance was handled, if there is a F1041 for the deceased, etc., etc.

It is possible you might have some income in respect of a decedent to report.

See
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p559/ar02.html">https://www.irs.gov/publications/p559/ar02.html</a>
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
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