schedule c

[ausf]

I've been filing a schedule C (via Home and Business) for a very small online retail gig (actually more of a hobby) the past 12 years. In 2019, this was barely active with little income. Can I just add the income to personal and take the standard deduction or do I still have to file a schedule C until I officially close the business?

[Anonymous_ · Accepted solution]

The iRS considers nine factors in distinguishing between a business and a hobby and no one factor is determinative.

• Whether you carry on the activity in a businesslike manner and maintain complete and accurate books and records.
• Whether the time and effort you put into the activity indicate you intend to make it profitable.
• Whether you depend on income from the activity for your livelihood.
• Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business).
• Whether you change your methods of operation in an attempt to improve profitability.
• Whether you or your advisors have the knowledge needed to carry on the activity as a successful business.
• Whether you were successful in making a profit in similar activities in the past.
• Whether the activity makes a profit in some years and how much profit it makes.
• Whether you can expect to make a future profit from the appreciation of the assets used in the activity.

See https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

You need to continue filing Schedule C as long as you have a sole proprietorship that generates income and expenses unless and until you close the business and cease operations.

[AnnetteB6]

You should continue with the Schedule C if you are depreciating assets for the business until you 'close' the business and dispose of the assets.  

Using the standard deduction is not related to filing Schedule C for your business income and expenses.