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Level 1
posted Apr 30, 2024 7:43:47 PM

How to fill in T2125 for final year of business but no revenue?

How do you handle a situation where you had no business income in a tax year? I want to indicate that I'm done business wise but I also want to show I had no revenue last year. Turbo Tax isn't allowing me to enter zeros. It's also trying to claim CCA resulting in a business loss. How do I not claim the loss?

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5 Replies
Moderator
May 1, 2024 7:27:39 AM

Are you using TurboTax CD/Download or TurboTax Online?

Level 1
May 1, 2024 12:14:41 PM

I'm using the download version.

Moderator
May 1, 2024 2:22:28 PM

On the business form, there is an option to indicate that it is your last year of business. For your CCA, you would go through and dispose of all your assets. You will likely end up with a business loss if you have no income, but that's ok as you will be able to carry that forward to future years. 

Level 1
May 1, 2024 2:33:53 PM

I ended up finding a post from 2019 where someone explained how you can override entries. I just set the CCA claim to 0 as my personal use of those assets was 100%. I figured this would be the easiest and most accurate way to handle things. Resulted in me paying more tax but that would have been the case if I had said "Yes" to the is this the last year of business question when I did my 2022 taxes. Unfortunately, 2023 had a number of life events that required me to focus on non-work matters.

Moderator
May 3, 2024 5:06:28 AM

Thank you for the update.

 

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