topic closing business in Get your taxes done using TurboTax

closing business

bolinda55 — Fri, 08 Nov 2024 18:00:45 GMT

For years I had a single employer/owner LLC and used the Turbo Tax Home and Business software. In 2024, I had limited revenue as I am closing the business and have some continued expenses. The revenue was under $1000. Can I continue to use the software and take the business deductions? I have not closed my business yet with the state because I need to finish paying bills and any outstanding taxes. Thoughts? Thanks.

Re: closing business

Bsch4477 — Fri, 08 Nov 2024 23:03:45 GMT

You can deduct expenses related to the production of income.

Re: closing business

bolinda55 — Thu, 30 Jan 2025 22:37:51 GMT

Thank you so much for your response. I just saw the answer and was not intentionally avoiding a reply. It is hard to for me navigate this site.

Can I deduct my health insurance/long-term care insurance costs? And should I use the Home and Business software.?

I promise to be more diligent re my follow-up.

Thanks!

Re: closing business

DawnC — Thu, 30 Jan 2025 22:51:01 GMT

Yes, you can use TurboTax Home & Business to deduct your self-employment health insurance premiums, including your long-term care premiums. However, the deduction is limited to and can't exceed your earned income from self-employment. See the article linked above for more information regarding health insurance premiums when you are self-employed.

Where do I enter my insurance premium expenses if I am self-employed? You would choose the last option.

Re: closing business

bolinda55 — Fri, 31 Jan 2025 18:23:12 GMT

Thanks for your response. So, if I made, say $1000 for example, I understand I can deduct $1000 of my Long-term care insurance bill. Can I deduct $1000 of my health insurance bill also?

This is related. I think. I can contribute the same amount of what I grossed or netted in 2024 to a Roth? If so, can I contribute a similar amount to my SEP? And lastly, what is earned income?

This is the last year I will have this business. Thanks so much for your response.

Re: closing business

RobertB4444 — Fri, 31 Jan 2025 21:12:14 GMT

Your insurance deduction is limited to $1,000 total. So you can deduct either LTC premiums or health insurance premiums but only up to $1000.

Contributions to Roths are limited to earned income up to the contribution limit. If your income is only this $1000 then your Roth contribution is limited to $1000.

SEP contributions are limited to 25% of your self-employment income. So in this case you can contribute $250 to a SEP.

Earned income is money that is earned by you. It does not include money earned by your money or investments (interest or dividends, etc.) or money paid to you for prior service (retirement, social security, etc.). Basically it's money from working.

@bolinda55

Re: closing business

bolinda55 — Sat, 01 Feb 2025 16:34:30 GMT

Thank you. Very helpful.