Question

Sole Proprietor stopped working years ago

Forum|Forum|5 years ago
March 1, 2021
1 reply
0 views

Hello. I actually stopped working a few years ago. I was a sole proprietor filing a schedule C--no employees.

I have been completing a schedule C each year in TT with zeros everywhere. I am definitely retired.

I believe the schedule C has not been going to the IRS since it has been all zeros.

So, do I need to amend a previous Tax return to show my business closed in a previous year?

No, you don't need to amend your income tax return. You can remove the Schedule C and related forms on your current year income tax return. Amending your return means filing a new form, 1040X. This is only required in certain situations.

See Do I need to amend?

To remove a business that transferred over from last year click on the following: How do I delete a prior-year Schedule C business that transferred over?

You may need to do some other things to close your business. Click here for more information.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

J

judyp07Author

Thank you. My next question is about my car that I used part for business while my business was active. I used the standard mileage rate. It became all personal use when I had no more business-- sch C. I sold this car in 2020. I did calculate the adjusted basis subtracting accumulated depreciation. I sold the car at a loss. Where in TT do I report this sale? I am not submitting a schedule C. I thought I would report this in Business Deductions and Credits which I found through the Topic List. I then answered Yes to the question Any Other Property Sales? I then entered the information requested which was the business portion of the sale. When I was finished entering, I got a message from TT that this sale results in a loss so will not be reported--only gains should be reported. So, where in TT should I be reporting the sale of this car?

KathrynG3

Only the business portion of the vehicle would have been deductible for active businesses.

The portion of the car used for personal use is taxable if there is a gain, but not deductible if it is a loss. From what you are describing, it would appear this loss is not deductible.

For more information, see: How do I edit or delete sale of business property (Form 4797)?

Vehicle Sale with business and personal use question answered.