Sole Proprietor stopped working years ago

[judyp07]

Hello.  I actually stopped working a few years ago.  I was a sole proprietor filing a schedule C--no employees. 

I have been completing a schedule C each year in TT with zeros everywhere.  I am definitely retired.

I believe the schedule C has not been going to the IRS since it has been all zeros.

So, do I need to amend a previous Tax return to show my business closed in a previous year?  

[HelenC12]

No, you don't need to amend your income tax return. You can remove the Schedule C and related forms on your current year income tax return. Amending your return means filing a new form, 1040X. This is only required in certain situations.

• See Do I need to amend?

To remove a business that transferred over from last year click on the following: How do I delete a prior-year Schedule C business that transferred over?

You may need to do some other things to close your business. Click here for more information.

[judyp07]

Thank you.  My next question is about my car that I used part for business while my business was active.  I used the standard mileage rate.  It became all personal use when I had no more business-- sch C.   I sold this car in 2020.  I did calculate the adjusted basis subtracting accumulated depreciation.  I sold the car at a loss.   Where in TT do I report this sale?  I am not submitting a schedule C.  I thought I would report this in Business Deductions and Credits which I found through the Topic List.  I then answered Yes to the question Any Other Property Sales?  I then entered the information requested which was the business portion of the sale.  When I was finished entering, I got a message from TT that this sale results in a loss so will not be reported--only gains should be reported.   So, where in TT should I be reporting the sale of this car? 

[KathrynG3]

Only the business portion of the vehicle would have been deductible for active businesses. 

The portion of the car used for personal use is taxable if there is a gain, but not deductible if it is a loss. From what you are describing, it would appear this loss is not deductible. 

For more information, see: How do I edit or delete sale of business property (Form 4797)?

Vehicle Sale with business and personal use question answered.

[judyp07]

Thanks.  So it looks like since this car sale resulted in a loss, and I am not filing a schedule C in 2020,  then this car sale does not get reported on my 2020 tax return. Am I correct?

[KathrynG3]

Correct. Assuming you did not receive a 1099 for the sale, the vehicle was converted to personal use some time ago, and was sold at a loss, then it does not need to be reported.

[judyp07]

That's exactly my situation.  Thanks!