How did you dispose of it and what did you sell? Did you sell shares of stock? Sell assets? Sell any Goodwill (customer list, ongoing business, etc)? Something else?
Just closed business. No selling of any assets or stocks. No payroll as it was only my wife and I'd business. No sales for all of 2018. No work done. We didnt know if we were going to pick back up after 2017 and we did not.
So you'll use the same as last year, and just report your disposition of the business with a disposition date of 1/1/2018. When you start in the Business Profile section there's a checkbox for "I sold, closed, or otherwise disposed of this business in 2018" that you'll need to select. Then just work it the rest of the way through per the guidance below.
If you did not have ANY assets that were being depreciated, you can just delete the business.
If you did have ANY assets for depreciation, you need to follow Carl's directions below.
that's not just assets. If the business had any inventory more than zero at the end of 2017, then that inventory needs to be accounted for.
Assuming this was a business reported on SCH C as a physical part of your 2017 1040 return, then you will be filing a "final" SCH C with your 2018 tax return to show your disposition of the business - be it sold, closed, stolen, destroyed, given away, abandoned, or whatever.
Closed SCH C Business
You need to report your business as "sold or otherwise disposed of".
Start working through your business "as if" you still own it. On the 2nd or 3rd screen in select the option for "I sold, closed or otherwise disposed of this business in 2018". If prompted for the date, enter the day after you last day of business in 2018.
If your business had no income in the tax year, you can not leave the business income section blank. You 'must' enter a digit, even if that digit is a ZERO.
If you had no business expenses, then you can leave that blank and don't even have to work that section through, if you don't want to.
If your business carried an inventory, the end of year (EOY) inventory must be zero. If it's not, then in the COGS section (Inventory/Cost of Goods Sold) indicate that you removed the entire remaining inventory for personal use. That effectively makes your EOY inventory balance, zero.
If your business had assets, then you must show the disposition of those assets. In the Business Assets section work through each individual asset on at a time, and select YES on the screen, "DId you stop using this asset in 2018?". Then on the next screen, "Special Handling Required?" if you sold the asset, select no and you will be prompted for your sales information on that specific asset. If you did NOT sell the asset, click the YES button. You must do this for each individual asset listed, even if it's already fully depreciated.
If you claimed any vehicle expenses in your business at any time from the day you opened your business, then you must most show the disposition of that vehicle. Work through the Business Vehicle Expenses section and indicate that you stopped using that asset in the business, when prompted. Then show your disposition of that vehicle. Most likely, you'll indicate that it was removed for personal use.
Once you have done all the above, that will make the 2018 tax year the last year you will file a SCH C for this specific business.
So I still have to purchase the business version. Bummer. Extra expense to report 0 lol but thank you
If you have no expenses to report in 2018 (that would also include any carry over losses from prior years) then you "might" get away with using the online version of Deluxe or Premier. But I don't know how the system works with the online version, for "allowing" you to use a lower version if you do "in fact" have carry over expenses such as an NOL for example.
I tried to use the deluxe version but it then promoted me to use the premier so I was hoping there was another way around it. Thanks!