I stopped my freelance business in 2018, no income/expenses. Marked as stopped. How so I remove all the expenses/assets and Schedule C? still need small business version?

[hkjk57]

02/23/19 - UPDATE TO THIS QUESTION: I have another question pertaining to this case. I live in Florida - which normally doesn't require a state return unless you have a business. Do I need to file a state return for 2018, even though the business ended 01/01/2018 and had zero income and expenses?

Original Question:

I had this "business" for several years. It's just a named sole proprietorship for my freelance work. I didn't have any work or expenses for this business, and have stopped doing freelance work for the company that I was earning that money from on 1099-Misc. For my 2018 taxes, I want to remove this business, but I know I can't just delete it. I've checked the box to say I'm no longer doing this business, showing it stopped on 01/01/2018. I added "income" as "Cash/Checks - No Income" and put in $0.00 for the amount to show no income. I went through the home office and vehicle to show no usage and Turbotax removed them. I still have several items though for expenses - such as communications, marketing, assets, etc. Can I just delete these? How do I get rid of them, and the Schedule-C? Do I have to pay to upgrade to the Turbotax small business again? Thank you

[tagteam · Accepted solution]

" Do I need to file a state return for 2018, even though the business ended 01/01/2018 and had zero income...?"

No. Florida does not impose a state individual income tax nor does it impose an income tax on sole proprietorships. Florida does have a corporate income tax, but that does not apply in your scenario.

Florida counties generally impose a tangible personal property tax on certain tangible personal property used in connection with a business, farm, or rental real estate, but that tax is not a tax on income, it is a tax on personal property (similar to real estate taxes). Further, since your business ended at the beginning of the year, you likely would have had zero personal property to report at that point anyway.

[hkjk57]

Thank you!!!

[tagteam]

You are most welcome.

[hkjk57]

Just curious to elaborate more - I had posted this full question on another post before you answered me. Is it correct still not to have to file with having previously had 'assets' in the business. This was my full other question about the DR-405: I stopped my sole proprietorship business in 2018, and converted assets to personal use. I did not have any income or expenses, and I already converted all of the assets to personal use on the federal return. Do I still need to file a Florida State Tax Return for 2018? Turbotax says I need a DR-405 if "- You own a business or have a rental property with assets (other than vehicles); and
- Your assets are located in Florida" - but the business ended 01/01/2018 and all of the assets (computers and office stuff) are now personal use.

[tagteam]

I posted an answer here --> <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4635728-i-stopped-my-sole-proprietorship-business-in-2018-and-conv...>

[Anita01]

You cannot e-fle if you have entered descriptions and zeroes.  Leave everything that no longer applies blank.  Just delete any expenses that no longer apply.  The one thing you have to do is edit each asset, whether car or home, and enter that it was converted to personal use and the date.  Yes, I'm afraid you will have to use Home and Business for this one last year to make these changes.

[hkjk57]

Thank you so much for your help!! I really appreciate your time and expertise

[hkjk57]

I have another question pertaining to this case. I live in Florida - which normally doesn't require a state return unless you have a business. Do I need to file a state return for 2018, even though the business ended 01/01/2018 and had zero income and expenses?