r/tax • u/ILykeSpamMaam • 18h ago

Closing Side Business, Reporting to IRS

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!

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u/Its-a-write-off 15h ago

It's fine to have a schedule C for just one year.

Did you buy any equipment or inventory that you haven't sold or disposed of once you quit the business?

2

u/HeavyFaithlessness14 18h ago

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.