@DianeW
in 2016 i showed a loss on my schedule C and in 2017 i had no sales but only expenses. i ended up closing my business feb of 2018. I did not report a schedule c to my 2018 tax return because i officially closed the business with the state board of equalization in feb 2018. HOWEVER, i was recently told i should amend my 2018 taxes to zero out my inventory. but I've also been told that if you don't report a schedule c anymore then the IRS will assume the business is dissolved.
1) IF, i do need to amend and zero out the inventory, what is the best way to do it so that i can use the loss as a tax write off? I have not yet decided if i will donate the inventory, sell for pennies on the dollar, or what to do yet but i will do what makes the most sense for the best tax write off (approx $14k worth of inventory)
2) Since i actually haven't disposed of the inventory yet then do i report it the year i actually dispose of it even though my business has been closed since early 2018?
3) if that is the case then do i need to continue filing schedule C each year with no activity but just to carry the inventory over year after year until i dispose of it?
4) LASTLY, with amending 2 years in a row trigger an audit?
thank you so much for your help!
