Since you filed Schedule C in the past (such as sole proprietorship or single member LLC), closing a business couldn't be easier. 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. No additional forms are needed.
For more info covering different situations, see this posting for how to close (abandon) a sole-proprietorship previously reported on Schedule C: To "get rid” of a business you have been reporting on Schedule C, you will stop filing the Schedule C.You should file a “final” Schedule C in the year you ceased operations. 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. Supplies, such as paper, inventory and raw materials, do not have to be accounted for unless you deducted the costs before and sell them.
Delete the Schedule C in the following tax year.
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 able to deduct as depreciation. Although it is rare, that may have an effect on the tax consequences if and when you sell your home. 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.
Turbo tax will not ask me if I closed my business, therefore I cannot make my schedule C final. I have no income for the business this year which is why it hasn't asked me. Any ideas how to get by this?
I've been using Turbo Tax personal & business as long as I had my LLC, I dissolved it this year with the State of Wisconsin, I 'll do a final schedule C this year and want to identify it as final. I can't find a means to do this . Help would be appreciated. Carl V
There is no place to mark it final like other business forms ... you will indicate it closed in the business info section of the Sch C interview and dispose of all assets.
If you need to close a business schedule C, see this article on closing a business
https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of