schedule C inventory

[nicoletta]

What is the name of your state (only U.S. law)? california

have had a craft business for the last 3 years and have had a loss. In 2008 decided not to continue the business. Last year's ending inventory carried forward to 2008 taxes as a negative and also the depreciation from the part of the house that was used for business. How should that be reported on the 2008 return?

thanks

 

[LdiJ]

What is the name of your state (only U.S. law)? california

have had a craft business for the last 3 years and have had a loss. In 2008 decided not to continue the business. Last year's ending inventory carried forward to 2008 taxes as a negative and also the depreciation from the part of the house that was used for business. How should that be reported on the 2008 return?

thanks

If the business has closed, then you should not be claiming depreciation or any other expense unless it was connected with the closing of the business.

For example, if you liquidated the business by selling the inventory at a loss, and selling the equipment, then it would be appropriate to claim the expenses, as well as the income generated by selling the inventory and equipment.

However, if you merely converted everything to personal use, then no.