Business expense paid out of pocket for biz sold in prior year

[mmarc2000]

I sold my small business in 2019 (an LLC), filed the final 2019 return (Form 1065) and reported that on my 1040.  Over the years I occasionally paid business expenses out of pocket and deducted those on Schedule E of my 1040.  In 2020 (after the business was sold) I personally paid some final business expenses.  Can I deduct those on Schedule E of my 2020 Form 1040?  Thank you!

[DavidD66 · Accepted solution]

Yes, you can report those expenses on your 2020 tax return.  Another option for how to do it would be to file a Schedule C, with no revenue, just the expenses you paid.