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DFS1
Level 1

Sold a business last year - Have a couple of related expenses (?) this year. File a schedule C?

Sold a small retail store in 2023.  Needed professional help with taxes and other sale related issues last year but didn't incur those expenses until after taxes had been filed in October 2024.  Schedule C for 2023 showed no income, but some expense for legal and accounting related to the sale incurred earlier in the year.  2024 I again have no income to report on a schedule C, but did reimburse the new owner for a few outstanding Gift Certificates that were honored.  I had not planned on filing a schedule C since the amount of the reported loss would be so small.  I did however pay $2500 to have the CPA do my taxes for 2023 only because of the complication of the store sale.  Is it reasonable to think I might file a "final" schedule C this year and report the loss related to both the reimbursement for the gift certificates and the accounting/tax preparation  charges incurred in 2024? 

Thanks for the assistance.

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1 Reply
DavidD66
Employee Tax Expert

Sold a business last year - Have a couple of related expenses (?) this year. File a schedule C?

Yes!  It is quite reasonable to claim valid business expenses on a Schedule C for 2024 after the sale of your business in 2023. 

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