PatriciaV
Expert Alumni

Deductions & credits

To dissolve your Schedule C business, firsts go to the Business Profile and indicate that you sold the business in the current year on the page "Tell us about your business." When you check that box, another question will pop up asking how you disposed of it. Answer "No," meaning you didn't sell it.

 

For each asset reported for this business under Assets for Depreciation, you will need to indicate that you converted it to personal use. You may use January 1 as the date of this conversion, since it should have been rental property last year. By converting the assets to personal use, there is no gain or loss on the conversion. This allows you to add the asset to Schedule E. Be sure to include any depreciation that you reported in prior years when you set up the assets again.

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