Question

I was 10% owner in a business last year. The business never made a profit and shut down last month. Do I need to file as a small business owner?

Forum|Forum|2 years ago
February 29, 2024
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TurboTax Online

No, but you should get a form K-1 from the partnership (1065) or S-Corp (1120S) as applicable. That form K-1 will populate a Schedule E on your personal return and depending on the income/deduction sources, other forms as well (Schedule B for interest earned, for example).

The partnership/S-Corp should file by 15 Mar and send K-1s if there were any transactions (income or expenses) for the tax year whether or not there were profits.

If the entity continued into this tax year a final return with K-1s closing the business will be filed for this tax year as well.

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