When you start your 2016 return, go ahead and let it import all your 2015 stuff and when/if asked indicate that yes, you do have business income to report on your 2016 return.
When starting the business section on one of the screens near the beginning of that section, select the option for "I sold or otherwise disposed of this business in 2016". If asked for a sale date or date of disposition, just enter 1/1/2016.
When you get to the business part of the 2016 return, you'll show your business income as zero. You can't just leave that section blank either. You have to physically enter the digit zero in the Business Income section. For the expenses section, you can leave that blank.
If you claimed any business vehicle expenses, then you must work through that section and indicate that you stopped using that vehicle for business in 2016. Give it a stop use date of 1/1/2016.
If you claimed a home office for the business, then you must work through that section and indicate that you stopped using that home office in 2016 on 1/1/2016.
If you have any Business Assets/Assets Being Depreciated, then you must work through each individual asset one at a time to first indicate that you stopped using that asset in 2016. If you sold it, give it a sale date of 1/1/2016 and work on through the sale. If you did not sell it (assuming you just "closed the business" per-se) then you will report it's disposition as "removed for personal use" and enter a stop use date of 1/1/2016.
If your business carried an inventory, then your EOY (End of Year) inventory for 2016 must be zero. So if your BOY (Beginning of Year) inventory is above zero, then to show the disposition of your remaining inventory on your 2016 return, if you did not sell it, then show it as "removed for personal use".
Doing all the above will ensure that you properly and completely report the closure and disposition of your business, and 2016 will be the last year you will file a SCH C with your personal return for this specific business.
Now, it is EXTREMELY IMPORTANT that next year, when you start your 2017 tax return that you indicate that you do NOT have any business income or expenses to report. Failure to indicate that properly will automatically take to to the more expensive Self-Employed version of the program, and we don't want that to happen.
