, Answering FAQ'sTurboTax Employee
If your Schedule C business transferred over from last year's return, but the business no longer exists and you need to remove it, here's what NOT to do:
- Do not delete Schedule C.
- Do not remove the business from the Business Summary screen.
To properly close out your business, you may need to dispose of assets, recapture depreciation, and/or claim deferred passive losses. Merely deleting the Schedule C or your business won't do this.
How to properly remove your business from TurboTax
- Open your return in TurboTax.
- (Home & Business) Click the Business tab and continue to the Your Business Income screen.
(All other versions) Click the Federal Taxes tab, and then click Wages & Income below it. Proceed to the Your Income Summary screen and scroll down to the Business Income and Expenses section.
- Click Update to the right of Profit or Loss From Business.
- Answer Yes to the question Any Business Income or Expenses?
- That's right – answering "No", while technically correct, will guide you down the wrong path!
- When you get to the Business Summary screen, click Edit next to the defunct business.
- On the next screen, click Update next to Business Profile.
- You should now be at the Let's Review Your Business Profile screen. Click the Edit button next to the sentence Disposed of Business in Current Year.
- Select the second checkbox I sold or otherwise disposed of this business and then answer the question about how you disposed of the business.
- Continue until you reach the Your Business screen and then click the Done With Business button.
Your former business is now properly removed from your return.