topic I closed my home daycare in 2016. Since I filed a schedule C last year do I need to do anything this year except answer no to the self employment income questions? in Deductions & credits

I closed my home daycare in 2016. Since I filed a schedule C last year do I need to do anything this year except answer no to the self employment income questions?

big-red769 — Wed, 05 Jun 2019 01:40:45 GMT

Since you filed Schedule C in the past (such as sole prop...

Coleen3 — Wed, 05 Jun 2019 01:40:46 GMT

Since you filed Schedule C in the past (such as sole proprietorship or single member LLC), closing a business couldn't be easier. TurboTax will ask you if you disposed of your business during the year. Once answered - there is nothing else to do for your income tax return. No additional forms are needed.

For more info covering different situations, see this posting for how to close (abandon) a sole-proprietorship previously reported on Schedule C:

To delete a business you have been reporting on Schedule C, you will stop filing the Schedule C.

You should file a “final” Schedule C in the year you ceased operations. 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.

Delete the Schedule C in the following tax year.

You should keep a record of how much depreciation you claimed (if any) for the home office space. Your basis in the home (your cost) is reduced by the amount you were able to deduct as depreciation. Although it is rare, that may have an effect on the tax consequences if and when you sell your home. If you weren't able to claim a home office deduction in any year or years (insufficient taxable income), the depreciation for those years can be ignored.

So when filing for 2017, what turbo tax option should I p...

big-red769 — Wed, 05 Jun 2019 01:40:48 GMT

So when filing for 2017, what turbo tax option should I purchase? I have started the deluxe but don't remember it asking me about "disposing" of my business. It just asked me if I had any self employment income to claim.

See the screen shot added above. In your 2016 program you...

Coleen3 — Wed, 05 Jun 2019 01:40:49 GMT

See the screen shot added above. In your 2016 program you had the option of the second choice.

Just delete the Schedule C. Don't delete your business if...

Coleen3 — Wed, 05 Jun 2019 01:40:51 GMT

Just delete the Schedule C.
Don't delete your business if it closed sometime in 2017. Instead, report the business and make sure you select I sold (or disposed of) my business in 2017 on the Tell us about your business screen.

Otherwise, follow these instructions to delete a business that transferred over from your 2017 return but is no longer owned by you as of January 1, 2017.
Instructions

    With your return open, search for this exact phrase: business (schedule c) (include the parentheses) and then select the "Jump to" link in the search results.
    Answer Yes when asked if you had (or want to work on) business income and expenses for 2017.
        That's right – you'll need to answer Yes, even though it doesn't make sense.
        If you're being forced to upgrade to Home & Business or Self-Employed, contact us for further assistance.
    When you get to the Business info or Business Summary screen, select Delete next to the defunct business.
    Answer Yes to confirm the removal of all business-related forms.