Closing of Schedule C business but no sale of assets

Forum|Forum|3 years ago
April 11, 2023
2 replies
22 views

I'm not sure how/where to input in Proseries that a client with a Schedule C is closing business but there has not been any sale of assets that have been partially depreciated, including a home office. What I'm reading is that there are no tax ramifications until these assets would be sold. Where do I show that the business is closing so that I don't have to continue to show 0 income and expenses on Schedule C? He is disabled and will never return to operating this business but will convert the vehicle to personal use and the home will not be sold right now.

ProSeries Professional

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J

jeffmcpa2010

Level 10

My method

Open the Schedule C

Click on Forms in the top tool bar

Scroll down through the menu and click on "Remove Schedule C"

If it is just a business that was close, in a non-taxable transaction that get's rid of the form and I move on.

T

taxes96786

Level 8

Jeff don't deprecating assets need to be reported as disposed with date business closed?

rbynaker

Level 13

Enter a sale date when the assets were removed from service but leave the sale price blank (you have to do this on each of the asset worksheets). That will give you the correct part-year depreciation. If there was anything with a 179 deduction you may have 179 recapture income.

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