Schedule C, 1099 and closing a business for 2020 taxes

[sojourning]

I worked as an independent contractor and filed Schedule C taxes in 2018 and 2019. I ceased working for this company at some point in 2019 and did not earn any income in 2020, and did not receive a 1099. 

Do I file the 2020 return as with $0 in income and expenses, as well as check the option to "Sold or close the business during 2020"?

Turbotax has previous year data with expenses, but since I've stopped working for them the full year of 2020 I'm not sure if I need to carry over any information or mark this as a disposed business.

[ToddL99 · Accepted solution]

It is best to report this as a "sold or closed business" - otherwise the program will continue to prompt you to answer business-related interview questions.

File the 2020 return with $0 in income and expenses, as well as check the option "Sold or closed the business during 2020.

Also, "dispose" of any assets that you may have been depreciating. Just go through the Asset/Depreciation interview and edit each asset to show that it is no longer in business use. Depending on how you disposed of the assets, you may have income or a loss (see Form 4797 Sale of Business Assets).