Sch C (No Activity)

[ILLMAS]

I have TP that a business, but it had no activity in 2008, there is no income and expenses and no depreciation ZERO, he does have a couple of fixed assets, I cannot efile his return because it's telling line 1 of Sch C has to be greater then 0, I wanted to delete the Sch C but I will lose all the fixed assets. Is there a way around this?

Thanks,

[Catherine]

I have TP that a business, but it had no activity in 2008, there is no income and expenses and no depreciation ZERO, he does have a couple of fixed assets, I cannot efile his return because it's telling line 1 of Sch C has to be greater then 0, I wanted to delete the Sch C but I will lose all the fixed assets. Is there a way around this?

Thanks,

Put in $1? How much can that possibly change anything? This is assuming you want to keep the Schedule C and the associated fixed assets for future years' use. If not, you can print out the asset list for future reference and then dump the Sch. C.

[GeneInAlabama]

On the asset entry tab, you can move the assets to "unassigned" and then I think you can delete the schedule C without any problem. I have never done this, but if they are on the "unassigned" tab, then they are no longer on the schedule C.

[GeneInAlabama]

To be on the safe side, you might try duplicating the return first before removing the sched C.

[ed_accountant]

I would add a 1 dollar to the Schedule C income and 1 dollar to schedule c expenses and note on the expenses, the business is inactive.

[ILLMAS]

Put in $1? How much can that possibly change anything? This is assuming you want to keep the Schedule C and the associated fixed assets for future years' use. If not, you can print out the asset list for future reference and then dump the Sch. C.

Duhh!! I should of thought about that, thanks that worked. It was too many assests to delete and re-enter, plus client is thinking of selling business, I don't like the double work.

[RitaB]

On the asset entry tab, you can move the assets to "unassigned" and then I think you can delete the schedule C without any problem. I have never done this, but if they are on the "unassigned" tab, then they are no longer on the schedule C.

This is what I do.

[kcjenkins]

If I'm sure the client is not going to start the business back up, just sell the assets when he can, I move them to 'unassigned' and then delete the C. But if I have any doubt at all, I'll do the $1 routine, so that I don't have to set it all back up and move everything back, etc, if he does start back. At least for one year. That has saved me a lot of time on a couple of them, when the t/p's health improved and he started back up, after all.

[RoyDaleOne]

Well, just to be different enter $1.00 income and $1.00 deduction to offset. You still take depreciation on assets that are idle, however, the depreciation ends when the asset is retired from service. Generally, sale, exchange, abandonment, or destruction, see Reg 1.167(a)-10.

The determination seems to turn on whether there is a permanent closing of the related trade or business, or the trade or business is in a temporarily suspension of the related trade or business due to business conditions.

[taxit]

If you just delete the sch c, the assets will automatically move to unassigned .