topic How do you close a sole proprietor business? in Business & farm https://ttlc.intuit.com/community/business-taxes/discussion/how-do-you-close-a-sole-proprietor-business/01/1484233#M49478 <P>I need to close a small business from 2017 and can't figure out how to depreciate out everything. I also don't know which turbo tax program I need I was thinking could do deluxe?</P> Wed, 15 Apr 2020 21:31:51 GMT Mail2Tina 2020-04-15T21:31:51Z How do you close a sole proprietor business? https://ttlc.intuit.com/community/business-taxes/discussion/how-do-you-close-a-sole-proprietor-business/01/1484233#M49478 <P>I need to close a small business from 2017 and can't figure out how to depreciate out everything. I also don't know which turbo tax program I need I was thinking could do deluxe?</P> Wed, 15 Apr 2020 21:31:51 GMT https://ttlc.intuit.com/community/business-taxes/discussion/how-do-you-close-a-sole-proprietor-business/01/1484233#M49478 Mail2Tina 2020-04-15T21:31:51Z Re: How do you close a sole proprietor business? https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-you-close-a-sole-proprietor-business/01/1484673#M49483 <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">No, you will need Self-Employed or Home and Business. You will encounter a screen that asks if you started or stopped your business. Indicate that you stopped.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">Since you filed Schedule C in the past (such as sole proprietorship or single member LLC), closing a business couldn't be easier. &nbsp;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.&nbsp;&nbsp;No additional forms are needed.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">For more info covering different situations, see this posting for how to close (abandon) a sole-proprietorship previously reported on Schedule C:</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">To delete a business you have been reporting on Schedule C, you will stop filing the Schedule C.&nbsp;</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>You should file a “final” Schedule C in the year you ceased operations</STRONG>. 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. &nbsp;Supplies, such as paper, inventory and raw materials, do not have to be accounted for unless you deducted the costs before and sell them.&nbsp;</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>Delete the Schedule C in the following tax year.</STRONG></SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">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&nbsp;<U>able</U>&nbsp;to deduct as depreciation. Although it is rare, that may have an effect on the tax consequences if and when you sell your home. &nbsp;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.&nbsp;</SPAN></SPAN></P> <P>&nbsp;</P> <P>Please see this&nbsp;<A href="https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of" target="_blank">LINK</A>&nbsp;for more information.</P> Wed, 15 Apr 2020 21:58:05 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-you-close-a-sole-proprietor-business/01/1484673#M49483 ColeenD3 2020-04-15T21:58:05Z
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topic How do you close a sole proprietor business? in Business & farm
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<P>I need to close a small business from 2017 and can't figure out how to depreciate out everything. I also don't know which turbo tax program I need I was thinking could do deluxe?</P>
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<pubDate>Wed, 15 Apr 2020 21:31:51 GMT</pubDate>
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https://ttlc.intuit.com/community/business-taxes/discussion/how-do-you-close-a-sole-proprietor-business/01/1484233#M49478
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<P>I need to close a small business from 2017 and can't figure out how to depreciate out everything. I also don't know which turbo tax program I need I was thinking could do deluxe?</P>
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<title>Re: How do you close a sole proprietor business?</title>
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https://ttlc.intuit.com/community/business-taxes/discussion/re-how-do-you-close-a-sole-proprietor-business/01/1484673#M49483
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<P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">No, you will need Self-Employed or Home and Business. You will encounter a screen that asks if you started or stopped your business. Indicate that you stopped.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">Since you filed Schedule C in the past (such as sole proprietorship or single member LLC), closing a business couldn't be easier. &nbsp;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.&nbsp;&nbsp;No additional forms are needed.</SPAN></SPAN></P> <P>&nbsp;</P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">For more info covering different situations, see this posting for how to close (abandon) a sole-proprietorship previously reported on Schedule C:</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">To delete a business you have been reporting on Schedule C, you will stop filing the Schedule C.&nbsp;</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>You should file a “final” Schedule C in the year you ceased operations</STRONG>. 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. &nbsp;Supplies, such as paper, inventory and raw materials, do not have to be accounted for unless you deducted the costs before and sell them.&nbsp;</SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif"><STRONG>Delete the Schedule C in the following tax year.</STRONG></SPAN></SPAN></P> <P><SPAN style="font-size:14px"><SPAN style="font-family:Arial,Helvetica,sans-serif">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&nbsp;<U>able</U>&nbsp;to deduct as depreciation. Although it is rare, that may have an effect on the tax consequences if and when you sell your home. &nbsp;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.&nbsp;</SPAN></SPAN></P> <P>&nbsp;</P> <P>Please see this&nbsp;<A href="https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of" target="_blank">LINK</A>&nbsp;for more information.</P>
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