My mother passed away in 2022. She had filed Schedule C to report self employment income for many years prior to her death. Upon her death, her remaining inventory automatically transferred to her estate, and the business was officially closed. What ending inventory should be reported on her final Schedule C -- zero or the value of inventory on her date of death? If zero, then would the value of inventory transferred to her estate be reported as items withdrawn for personal use? If the ending inventory should be reported as the value on her date of death, and she hadn't recorded that value, should I estimate the closing inventory based on profit she made in previous years? Or should I not even file a Schedule C if I don't have an accurate ending inventory? In other words, is it better to estimate business income or not report any income at all if I don't have accurate numbers? Her gross sales for 2022 were approximately $3,200. So it's a fairly small business.
