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New Member

Closed down business in December,2017 and retired. No 1099 involved. how to file taxes.

No pension,no IRA .No extra income except SSI.

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New Member

Closed down business in December,2017 and retired. No 1099 involved. how to file taxes.

The info below may be more or less than you need. It's hard to tell without knowing more about your return. If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

You should file a “final” Schedule C in the year you ceased operations. You can do that this year. This will permit you to “dispose” of any business assets you have been depreciating so TurboTax can calculate any gain or loss on the sale.  Supplies, such as paper, inventory and raw materials, do not have to be accounted for unless you deducted the costs before and sell them.

Even if you dispose of the business in a single sale to one buyer, the IRS requires you to separately determine the value of each asset—furniture, fixtures, equipment—so that each is treated properly for tax purposes.

Determining the assets’ market value allows you to calculate whether there is a taxable gain or loss in each case. TurboTax allows you to easily do this:

·         With your return open, search for this exact phrase: business (schedule c) (include the parentheses)

·         click the "Jump to" link in the search results.

In Business Profile, select to edit "sold business in current year" and select the option for "I sold (or disposed of) my business in 2017". Then select NO and click Continue. Click Continue again.

If you claimed "any" vehicle expenses at any time for any year(s) you had this business, then you must work through the Vehicle Expenses section to indicate that you removed all vehicles used from this business to personal use.

Finally, work through Business Assets. You must work through them one at a time and indicate the disposition (retired, sold, disposed of, converted to personal use) of that asset by checking the box next to "The item was sold, retired, ...". (See the attached screenshot below. Click to enlarge.)

Follow along the interview.

On the "Enter Asset Sale Information" screen, enter the Sales Price. (See the attached screenshot below. Click to enlarge.)

Only once you've accounted for the disposition of all assets, vehicles, unsold product, and claimed all taxable income of the business (if there was any in 2017), the profit or loss of each will be automatically transferred to the correct forms for you.

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