You don’t have to file any special forms to close out a Schedule C Business.
To close out your business on your 2016 tax return, go through the business section of your return as usual.
· Go to the Business Profile, and choose Update.
· On the screen Let’s confirm your business info, scroll down to the line Disposed of Business in Current Year.
· Choose Edit, and change your answer from No to Yes.
· On the drop-down menu, choose that you did not close your business in any of the ways mentioned.
Continue entering your income and expenses for 2016, and include the income from the return of merchandise to Mary Kay. If you sold any equipment, or stopped using a vehicle that you used for this business, you will enter that information in the business sections that deal with vehicle expense and depreciation.
Next year, you simply don't report that business any more.
Please see the screenshots below.
You don’t have to file any special forms to close out a Schedule C Business.
To close out your business on your 2016 tax return, go through the business section of your return as usual.
· Go to the Business Profile, and choose Update.
· On the screen Let’s confirm your business info, scroll down to the line Disposed of Business in Current Year.
· Choose Edit, and change your answer from No to Yes.
· On the drop-down menu, choose that you did not close your business in any of the ways mentioned.
Continue entering your income and expenses for 2016, and include the income from the return of merchandise to Mary Kay. If you sold any equipment, or stopped using a vehicle that you used for this business, you will enter that information in the business sections that deal with vehicle expense and depreciation.
Next year, you simply don't report that business any more.
Please see the screenshots below.