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J
joels2
March 20, 2025
Question

I closed a business in 2024 with no sales. I paid off an equipment lease. I was only able to sell the equipment at a $3000 loss. Should I just use the standard deduction?

  • March 20, 2025
  • 1 reply
  • 0 views
Current itemized deduction is $8695 plus the loss is still less than the standard deduction. I'm trying to reduce the due tax of $142.

    1 reply

    M
    Mike9241
    March 20, 2025

    if you had a business rather than a hobby, you file schedule C and report all the business expenses there despite having no sales. 

     

    see this link for iRS guidelines on business vs. hobby

    https://www.thebalancemoney.com/is-this-business-for-real-or-is-it-a-hobby-397675 

    J
    joels2Author
    March 20, 2025

    Will adding this business expense reduce my taxable income enough to offset the $142 I already have to pay using the standard deduction?

    Last year even with all the business expense totaled up, they are still less than the standard deductions was still larger. Thus TurboTax recommended taking the standard deductions.

     

     

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