Before you file your 2020 tax return, if you have decided that you do not plan to continue your Schedule C business, there is a question in the self-employed section about whether you 'disposed' of your business or 'stopped work' during the year. You can check this box to indicate that your business will not continue into subsequent tax years.
Additionally, if you have assets entered on your Schedule C that are being depreciated, you need to go through each one and indicate that they are no longer being used for business. This will effectively end the depreciation and dispose of the asset properly tax-wise.
Here is what the TurboTax help content says about this check-box for 'stopping work':
If you’re self-employed and simply stopped doing this type of work, answer Yes here.
You'd also answer Yes if you own a business and you did one of these things:
Before you file your 2020 tax return, if you have decided that you do not plan to continue your Schedule C business, there is a question in the self-employed section about whether you 'disposed' of your business or 'stopped work' during the year. You can check this box to indicate that your business will not continue into subsequent tax years.
Additionally, if you have assets entered on your Schedule C that are being depreciated, you need to go through each one and indicate that they are no longer being used for business. This will effectively end the depreciation and dispose of the asset properly tax-wise.
Here is what the TurboTax help content says about this check-box for 'stopping work':
If you’re self-employed and simply stopped doing this type of work, answer Yes here.
You'd also answer Yes if you own a business and you did one of these things: