I purchased a business and later had to close it. How do I show the loss on Turbotax Business?

You'll need to provide more details, as it does matter.

What kind of business? Single Member LLC? Multi member LLC? S-Corp? C-Corp? Partnership?
Were you the only owner of the business? Or maybe you purchased a percentage or share of the business?
Just a bit more detail needed to explain "I remodeled it". Was it a storefront? Maybe one of those mobile businesses such as an ice cream truck?

With more information, someone may be able to offer more useful help here.

 

Hello,
Thanks for your response!
1. Multimember LLC
2. 2 owners 50/50

3.  It was a restaurant in a leased retail space.  Ill use example numbers: Purchased for 100k, Renovated for 25k, flooring, decor, walls etc.  Then closed for a total loss.  

Thank you!

This web reference has a good summary of the applicable rules:

https://www.legalzoom.com/articles/are-llc-startup-expenses-tax-deductible

Yes, you can figure out and claim your loss by completing the tax return for the LLC and reporting your share on your personal tax return.

 

As a multi-member LLC, you need to file Form 1065, unless you have requested to be taxed as an S-Corporation by filing Form 2553 (in that case you file Form 1120-S). I am assuming that the other member of the LLC isn't your spouse. If it is your spouse, you have other options.

 

On the screen, About Your Business select Yes for the first question if the business was closed before the end of the tax year. Select Yes for the second question if your purchase occurred during the same tax year.

 

To report the loss of your assets:

 

1. Under the Federal tab, select Income.
2. Scroll down to Dispose of Business Property, select Start or Update to the right.
3. Answer Yes to Did you dispose of any assets in 2023?
4. Select Continue.
5. If you have already entered the purchase of the restaurant as an asset, it'll show here. Otherwise, select Add An Asset in the lower right corner.
6. Answer the questions about the purchase. When you finish the section, it'll come back to Select Disposed Asset. 
7. Click Select to the right of your entry. 
8. Answer the questions about the disposition of the restaurant. For example if you had a flood, select casualty loss as the type, and then complete the remaining questions. 
9. Repeat the process for your remodeling costs.

 

Your losses will flow through to the partners on Schedule K-1, which you must report on your personal tax returns.

 

If you have additional questions about your situation, ‌ respond back to this thread.