Schedule C losses are recognized each year with the operations of the business. When you mark to terminate the business, you will still enter the income and expenses for the year. Since you made capital contributions and still ended up with negative equity, your net earnings for the year should show the loss. Also, you need to "dispose" of any assets you were using in the business and switch them back to personal use or record the sale if you sold them. Once you have done all this, TurboTax will deduct your allowable loss from your other earned income.
To mark a business asset changed to personal use in TurboTax Online you can follow these steps:
- Within your tax return use the magnifying glass icon to search for Schedule C
- Click the Jump to link
- Click Edit or Review for the line of work the asset is under
- Scroll to and click Edit for Assets
- Click Yes on the Do you want to go directly to your asset summary? screen
- Click Edit for the asset you need to change
- Continue through the questions until you get to the Tell Us More About This Asset / Large Purchase screen
- Check the This item was sold... line
- Make sure any other boxes are checked as they should be and Continue through the questions for this asset
- Repeat the steps for any other assets on your Asset Summary screen
- Proceed entering/reviewing your return
@concisa
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
