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Business & farm
I would think in this limited case, yes. File a schedule C with the expense only, which will create a loss against your other income. If you had paid the tax on 12/31/2019 instead of 1/2/2020 (or whenever the exact date was) it would have decreased your taxable gain or increased your NOL for 2019, so I don't see an issue now. (It certainly would have been much more sensible to pay the tax before 12/31/2019 if you knew you were closing the business.)
You can't list expenses and deduct losses indefinitely, but here you have a perfectly good explanation.
March 2, 2021
7:42 AM
931 Views