Closed SCH C
Business
You need to report your
business as "sold or otherwise disposed of".
Start working through your
business "as if" you still own it. On the 2nd or 3rd screen in select
the option for "I sold, closed or otherwise disposed of this business in
2017". If prompted for the date, enter the day after you last day of
business in 2017.
If your business had no
income in the tax year, you can not leave the business income section blank.
You 'must' enter a digit, even if that digit is a ZERO.
If you had no business
expenses, then you can leave that blank and don't even have to work that
section through, if you don't want to.
If your business carried an
inventory, the end of year (EOY) inventory must be zero. If it's not, then in
the COGS section (Inventory/Cost of Goods Sold) indicate that you removed the
entire remaining inventory for personal use. That effectively makes your EOY
inventory balance, zero.
If your business had
assets, then you must show the disposition of those assets. In the Business
Assets section work through each individual asset on at a time, and select YES
on the screen, "DId you stop using this asset in 2016?". Then on the
next screen, "Special Handling Required?" if you sold the asset,
select no and you will be prompted for your sales information on that specific
asset. If you did NOT sell the asset, click the YES button. You must do this
for each individual asset listed, even if it's already fully depreciated.
If you claimed any vehicle
expenses in your business at any time from the day you opened your business,
then you must most show the disposition of that vehicle. Work through the
Business Vehicle Expenses section and indicate that you stopped using that
asset in the business, when prompted. Then show your disposition of that
vehicle. Most likely, you'll indicate that it was removed for personal use.
Once you have done all the
above, that will make the 2017 tax year the last year you will file a SCH C for
this specific business.
