MaryK1101
Employee Tax Expert

Business & farm

If you did not have employees, winding down the business is easier.  For an S corporation you must:

  • File Form 1120-S, U.S. Income Tax Return for an S Corporation for the year you close the business.
  • Report capital gains and losses on Schedule D
  • Sale of Business Property for each sale or exchange of property used in the business- this would apply to the S Corp business automobile.  

See IRS Closing a Business.  You also want to make sure you cancel your business registration with the secretary of state in the states you filed in. 

 

NOTE:

If  it was an S Corp and the car was not titled in the SCorp name, you cannot take the depreciation as a business expense- you would need a reimbursement policy for the personal use of your vehicle for the business.  You need to correct that and since it has been a few years, you should seek a tax professional. 

 

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