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posting sale of inventory from partial sale of business

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Level 2

How do I post sale of inventory as partial sale of business?  I put on 4797 and it is showing as long term capital gain

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Level 15

Sale of inventory (in bulk) is no different than selling it bit by bit over time.

It's ordinary income.  It goes on the same line regular sales in the normal course of business would go.

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Highlighted
Level 15

Sale of inventory (in bulk) is no different than selling it bit by bit over time.

It's ordinary income.  It goes on the same line regular sales in the normal course of business would go.

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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Level 12

How is it "as partial sale of business?"

They sold out a specific product line and intend to stop that activity? There is no tax provision for this. Did they sell something else, that makes this "part of the business?"

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Level 2

client had 2 store front locations and sold one of the locations with inventory and equipment

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