To completely
report your business as being no longer, you must do all of the following:
At the beginning of the
business section one of the screens has a selection on it for "I sold or
otherwise disposed of this business in [tax year]. You must select that option
and press on "as if" you still own the business.
WHen you get to the
business summary screen, you have to work through income and expenses, even if
those amounts are all zeros.
Next, you must work through
the Business Assets section, and if any assets are listed there you must show
your disposition of each and every asset one at a time. Start working through
the first asset and on the screen that ask, indicate that YES you DID STOP
USING this asset in [tax year]. Then continue working the asset through to
report it's disposition - be it sold, removed for personal use, given away,
stolen, destroyed, whatever.
Note that you must show
your disposition for each and every asset listed, individually.
Next, if you have any unsold inventory indicated by an End of Year (EOY) balance in the COGS section, you must get your EOY balance to zero. To do this, indicate that you removed all remaining inventory "for personal use". This gets your EOY inventory to zero.
After you're finished with
all the assets, if your business claimed ANY vehicle use at ANY time you were
in business, then you will need to work through the business vehicle section to
show the disposition of the vehicle - even if that vehicle was a personal
vehicle not used 100% for the business. Most likely, your disposition of the vehicle
would be "removed for personal use", beucase while not unheard of,
it's rare that the sale of a business reported on SCH C would include the
vehicle in that sale too.
Once you've completed all
the above, just work it through to the end, and this will be the last year you
file a SCH C for this specific business that you no longer have.
