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Level 1
posted Apr 5, 2021 1:30:50 PM

I have a FT job but keep my general contracting business open and licenses current. I have zero income from it, does that mean I have "stopped this work"?

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1 Best answer
Expert Alumni
Apr 5, 2021 1:51:37 PM

If you plan on resuming work as a general contractor, you have not "stopped this work".

 

If you do not have plans to resume working as a general contractor, then you should "close" the business, i.e.check that you have "stopped this work" and "sell or dispose" of any depreciating business assets you have.

 

If you aren't going back to this business, then you are not allowed to claim any business expenses - especially depreciation on business assets. That expense will continue to automatically get deducted by TurboTax on your Schedule C. Selling or disposing of those assets stops the depreciation (also may result in a gain or loss on the sale of the assets).

 

1 Replies
Expert Alumni
Apr 5, 2021 1:51:37 PM

If you plan on resuming work as a general contractor, you have not "stopped this work".

 

If you do not have plans to resume working as a general contractor, then you should "close" the business, i.e.check that you have "stopped this work" and "sell or dispose" of any depreciating business assets you have.

 

If you aren't going back to this business, then you are not allowed to claim any business expenses - especially depreciation on business assets. That expense will continue to automatically get deducted by TurboTax on your Schedule C. Selling or disposing of those assets stops the depreciation (also may result in a gain or loss on the sale of the assets).