@kobiBear wrote:
Thanks for the reply.
Before I created the LLC in 2021, I had some profit from sales over the years but I have not sold anything since the time of formation (I have not been very active with it). My idea was to dissolve it due to the LLC taxes on the now dormant business and just keep the name and website as I had done before formation.
I'm planning on keeping the printer I purchased in 2023, so could it qualify for the 179 deduction though I no longer have the LLC but still have the name/website?
You can't take a section 179 deduction unless you file a schedule C. Are you planning to file a schedule C with no business activities? And then file another schedule C in 2024 to close the business? And you're going to show a big expense and a big loss with no income in the year before you close the business? I don't know how tightly the IRS will scrutinize any particular tax return, but it doesn't sound right to me to do that.
If the business is dead as of 12/31/23, you can file a closing schedule C on your 2023 tax return, even though you don't de-register the business with the state until 2024. Then you don't list the equipment.
Did you file a schedule C in 2021 and 2022, with no sales and no activity?
Is this printer really an ordinary and necessary expense for your business if your business is dead, you haven't sold anything since 2021? And remember, even if you take section 179 on your 2023 tax return, and then you convert the printer to personal use in 2024 when you close the business, you will owe recapture tax when and if you sell it.
