topic Re: schedule c in Get your taxes done using TurboTax

schedule c

ausf — Tue, 17 Mar 2020 14:02:46 GMT

I've been filing a schedule C (via Home and Business) for a very small online retail gig (actually more of a hobby) the past 12 years. In 2019, this was barely active with little income. Can I just add the income to personal and take the standard deduction or do I still have to file a schedule C until I officially close the business?

Re: schedule c

Anonymous_ — Tue, 17 Mar 2020 14:17:07 GMT

The iRS considers nine factors in distinguishing between a business and a hobby and no one factor is determinative.

Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.
Whether the time and effort you put into the activity indicate you intend to make it profitable.
Whether you depend on income from the activity for your livelihood.
Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business).
Whether you change your methods of operation in an attempt to improve profitability.
Whether you or your advisors have the knowledge needed to carry on the activity as a successful business.
Whether you were successful in making a profit in similar activities in the past.
Whether the activity makes a profit in some years and how much profit it makes.
Whether you can expect to make a future profit from the appreciation of the assets used in the activity.

See https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

You need to continue filing Schedule C as long as you have a sole proprietorship that generates income and expenses unless and until you close the business and cease operations.

Re: schedule c

AnnetteB6 — Tue, 17 Mar 2020 14:22:07 GMT

You should continue with the Schedule C if you are depreciating assets for the business until you 'close' the business and dispose of the assets.

Using the standard deduction is not related to filing Schedule C for your business income and expenses.