How can I skip a Schedule C for 2021?

7 replies
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My client has a business teaching music. Thanks mostly to Covid, she took the year 2021 off but plans to restart in the late spring or early summer of 2022, so I'd like to skip 2021 but not delete the Schedule C.

ProConnect Tax

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IRonMaN

Level 15

The software won't let you just ignore the form? If not, how about if you enter zero for sales?

Slava Ukraini!

J

jamesgrogers.cpaAuthor

Level 2

I tried entering $0 in income, but that doesn’t work. The error notice says there has to be at least $1 of income. Entering that clears the error message and doesn’t increase the client’s tax liability. I can then add a $1 miscellaneous expense item to reduce the Schedule C’s net income back to $0. This seems very hokey to me. Surely, there’s a way to “Skip this year.” There’s a place to do that with pension income reported on Form 1099-R.

itonewbie

Level 15

Try this. On that Sch C, on the Business Information tab, under the General Information section, on the line for "1=delete this year, 2=delete next year", enter 1. That should do the trick.

Here's what you should also take note of:

1) Depreciation: You may like to override the depreciation of any related assets since depreciation will still be computed in spite of Sch C being removed for the year. If the asset is retired, you should then enter a date instead.

2) Rollover: If you enter 1 to delete this year, the activity won't be rolled over. If you want the data to be rolled over, make sure you remove your entry for delete this year before the rollover. I know, it's a bummer. But that's how ~~dumb~~ smart the system is.

---------------------------------------------------------------------------------Still an AllStar

IRonMaN

Level 15

@itonewbie

Nice to see your smiley face here ---------- it's been a long time 😁

Slava Ukraini!

itonewbie

Level 15

Thanks, @IRonMaN! There's a glitch in a return I am preparing and still can't get that it resolved. That reminds me of this little community we have, lol!

---------------------------------------------------------------------------------Still an AllStar

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