Closing small business in VA

[Joninva]

Does Turbotax have a way to close a business in the software UI? Does it file an 8594 when someone closes their business to deal with the assets? I have a small photo/video business I am ready to close and need to deal with the gear properly. What can someone expect for tax situation when closing a business that has equipment like cameras and lenses and stuff? These depreciate pretty quick. I would be selling the assets to myself from the business. Converting them to personal use. Business is basically too slow and its more of a power hobby now. 

[tagteam]

Assuming you are a sole proprietor filing on Schedule C, you do not need to file Form 8594 (not included in the personal versions of TurboTax, regardless) when converting your business assets to personal use.

You do need to keep track of the depreciation deductions you took previously since they reduce your basis in the property and factor into your basis if/when you eventually sell to an unrelated third party.

[Joninva]

Ok. That is good to know. So the personal Turbotax UI has the right questions and what not to address closing the sole proprietor status/business? I don't recall seeing an option or question like, "are you still operating a business?" or something like that. 

[tagteam]

There is such a question re whether or not your business was closed during the tax year. 

However, you still need to convert your business assets to personal use in the program (which you will find the Assets/Depreciation section). There is a checkbox for that purpose.