Do I carry over a consulting business, from which I didn't earn anything in 2006?

I use TurboTax to do my income taxes. In 2005 I did some consulting business on the side, to earn some extra money. It was only about $1000, but I had to report it. So, I entered it as a business (I guess, I honestly cannot remember). The thing is I don't really have a business, so it might not have been a business. I entered it as consulting. So, I am now using TurboTax 2006 Deluxe to do my 2006 taxes. It has detected what I entered last year. I called it, "Service: Consulting and Contract". However, I didn't do anything at all with that last year. I didn't earn any money at al, and I didn't spend anything at it. So, should I delete it from TurboTax? (Unfortunately, I do not know what line this would affect in the tax forms. This particular window doesn't give me any line numbers.) It is, however, in that portion of TurboTax in which it is trying to determine all of my income. Rod

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Rod
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Questions related to specific tax software should be posted in forums related to that product. However, I believe I can provide some general advice that may help you resolve this. For Tax Year 2005 TurboTax probably completed a Schedule C for your consulting income. (You should review your 2005 tax return.) If the form that TurboTax is now asking about is a Schedule C, and if you did not have any self-employment income for Tax Year 2006 you can delete the empty Schedule for Tax Year 2006.

-- Vic Roberts Replace xxx with vdr in e-mail address.

Reply to
Victor Roberts

It might be a little more complicated than that, I think: If Rod took any depreciation or 179 expensing in 2005, he needs to either continue depreciating (if he intends to resume consulting in the next few years) or pay for recapture of the expensing or accelerated depreciation, no?

Reply to
NoSuchPerson

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