Hi everyone,
I recently started a side business for the past 8 months, but noticed that the market for it is having a huge down turn. I've made about 10k in revenue, but had about 13k of expenses so I ended up having a loss of 3k. I don't believe it is financially wise to continue with this business, so I'm unsure what to do regarding my taxes. It's just myself, and I keep tight records about items I purchased, sales I made, and documents that show these are for a business. When I report it on my schedule c next year, do I continue to keep sending in schedule c's even though I've decided to stop the business for future years? I'm not sure how the IRS would respond to this if I only report a loss for 1 year. Thanks!
Closing Side Business, Reporting to IRS
byu/ILykeSpamMaam intax
Posted by ILykeSpamMaam
1 Comment
Report the schedule C on your 2025 return and don’t worry about the future. My spouse was a 1099 contractor a few years back then was switched to W-2 employee. The IRS never questioned us what happened to the business.