In addition to W-2 income and schedule K income I have filed Schedule C, for the last two years, for a home based business that was not very profitable. The expenses related to this business were mostly office equipment related and I setup depreciation schedules for the larger expendures (computer equipment). Deciding in 2005 that this business was not ever really going to be successful I began using the equipment for an unrelated use. This new use has been successful thus far and I expect it to continue to be so. My question is can/should I simply change the type of principal business or profession on schedule C and carry on with the existing depreciation schedules since I am using the same equipment or should I disolve the first business and create a new one?
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