Closing Temporarily

[Lyss]

I'm taking some time off. All my kids just graduated to Kindergarten and I'm not planning to replace them until next fall (a year from now). It's not a guarantee I will reopen but it's the plan right now.

Do I need to claim the business as closing this year? Will my end of year hours worked calculations need to reflect the whole year or just these months I worked?

[Mike]

You don't have to close the business if you don't want to. You might even continue having expenses the next year. You can still claim them.

[TomCopeland]

Closing temporarily

I'm taking some time off. All my kids just graduated to Kindergarten and I'm not planning to replace them until next fall (a year from now). It's not a guarantee I will reopen but it's the plan right now.

Do I need to claim the business as closing this year? Will my end of year hours worked calculations need to reflect the whole year or just these months I worked?

You should file your normal tax forms for this year. You don't need to announce that you are closing. Your time-space % should be calculated based on the months you were in business and you will claim your expenses for the months you were in business. See my article on this: http://tomcopelandblog.com/how-does-...ect-your-taxes

[Lyss]

You should file your normal tax forms for this year. You don't need to announce that you are closing. Your time-space % should be calculated based on the months you were in business and you will claim your expenses for the months you were in business. See my article on this: http://tomcopelandblog.com/how-does-...ect-your-taxes

Thanks so much! This answers my questions!