Greynewfs
Level 3
06-10-2020
10:47 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Taxpayer sold his business for one lump sum. There were assets and inventory of goods for resale. All assets had been fully depreciated. How do I report this. What do I do with the ending inventory on Sch C?
Solved! Go to Solution.
Labels
abctax55
Level 15
06-10-2020
10:57 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Wouldn't ending inventory be zero, if all sold?
Sale of the inventory (even in a bulk sale) is reported just like any other sale of inventory - on Schedule C.
Assets sold go on F 4797.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"
Greynewfs
Level 3
06-15-2020
11:00 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That is what I thought. Just looking for confirmation, because that will make his SE tax thru the roof. Thank you.
abctax55
Level 15
06-15-2020
11:20 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Why?.... isn't he selling the inventory basically at cost? That's been my experience in the past.
And any gain on the other items won't hit Sch C.
"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
( Generic Comment )"
