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Sale of a business

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Level 3

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?

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Level 15

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.

Former Chump... umm.... AllStar.
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View solution in original post

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Highlighted
Level 15

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.

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 3

That is what I thought.  Just looking for confirmation, because that will make his SE tax thru the roof.  Thank you.

 

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Level 15

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.

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