Business startup and closure Hi,
I was planning on opening a store and registered my business in Feb 11 with irs/federal and state. I got EIN and state ID etc. I also purchased a machine as a sample to use in the business. However, right before I signed a lease, someone else opened the same business across from my location. So I quit and looked at other nearby towns but couldn't find a good location. So I have decided not to purse this business. Now I spent $2600 + $700 shipping expense and mileage for my trips to find a location etc are my expenses.
I found someone that wants to buy the machine for $2k and I will lose $1300 (incl shipping) from this. Can you tell me what I need to do to close this business. Will I be able to deduct the loss/expenses when I file my personal taxes at the end of the year? This is a sole-prop llc. |