Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

posting sale of inventory from partial sale of business

teresa1
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

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
abctax55
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.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

View solution in original post

3 Comments 3
abctax55
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.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
qbteachmt
Level 15

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?"

*******************************
"Level Up" is a gaming function, not a real life function.
teresa1
Level 2

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

0 Cheers