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Level 3
posted Nov 19, 2021 9:46:10 AM

Need to file Schedule C if no income from Sole Proprietorship this year?

This tax year, I have not had any expenses OR sold any paintings (sole proprietorship). But not sure if I still need to file a Schedule C as I do every other year I did have income from it.

When I file my Schedule C normally I do keep and report inventory under costs of good sold section every year. Even without expenses or income to report,  I wondered if I still needed to file just for the inventory part to remain current as of this year?

And If I don't file one this year but NEXT year when I have income again and File I will be carrying over "inventory at end of year" from 2 tax years ago?  Is that ok?

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1 Replies
Level 15
Nov 19, 2021 10:22:24 AM

Yes ... if you have inventory and/or depreciable assets you should continue to file a Sch C each and every year even if you had no income to report.