On a non active small at this time, loses were experienced in years prior: why do we have to file car, supplies, expenses information with $0 business income. There are no expenses; but turbo tax always asks for that time consuming information.
Hi, @hbcrac , thanks for the question! To answer, as a general rule, TurboTax uses prior year information to help it determine what may apply to the current year, in an effort to make sure that nothing is missed. However, if you have no activity to report for this business, you should be able to delete the whole business.
Hope this helps, please let me know if this raises additional questions!
Hi hbcrac,
If you used Turbotax in a previous year for the non active small business (Schedule C), that business will have it's information imported for the current year. You can delete the business information if it will not be active for the current tax year. You may need to input the business information in the future if it becomes active again.
Sometimes a limited liability company has a year with no business activity. A newly formed LLC might not have started doing business yet, and an older LLC might have become inactive without being formally dissolved. But even though an inactive LLC has no income or expenses for a year, it might still be required to file a federal income tax return.
An LLC that is not considered a separate entity for federal income tax purposes is taxed in the same way as a sole proprietor: the LLC’s income and expenses are reported as self-employment income on Schedule C of the member’s personal tax return. You are required to file Schedule C if your LLC’s income exceeded $400 for the year.
If a one-member LLC did not have any business activity and does not have any expenses to deduct, the member does not have to file Schedule C to report the LLC’s income. However, the member will still have to file a personal tax return if he or she had other income, and may have to file a Schedule C if there was self-employment income from another business.
Have a blessed day!
Eric