about three years ago my wife and i had an idea for a small business. we took classes, went through the trademark process (never completed), had prototypes made, established a domain name and web site, got business licenses and participated in several fairs to try to sell our goods. it did'nt pan out. we took about $6000 in deductions on our tax return over the time we were seriously persuing it. we never made any sales.
now we have about $3000 in inventory and another $1000 in ancillary equipment.
i can't figure out how to close the business out. if we give the merchandise away it will be a charitible contribution for which i will get another deduction. we can't sell the stuff as there is no market. i tried ebay without luck. each year i input the value of the inventory at the same as it was the prior year showing no activity.
how can i bring this thing to a conclusion? i don't want to have to go back and amend my prior tax returns. should i just stop reporting it? any advice would be appreciated.
jschwell
now we have about $3000 in inventory and another $1000 in ancillary equipment.
i can't figure out how to close the business out. if we give the merchandise away it will be a charitible contribution for which i will get another deduction. we can't sell the stuff as there is no market. i tried ebay without luck. each year i input the value of the inventory at the same as it was the prior year showing no activity.
how can i bring this thing to a conclusion? i don't want to have to go back and amend my prior tax returns. should i just stop reporting it? any advice would be appreciated.
jschwell