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Donut Shop

Level 1

I have a customer who sold her donut shop back in October, Where on the 1040 and what schedule would I report the amount she received for the sale between buyer and seller only, no escrow involved. I noticed there is line 5 and line 6 on Schedule C, but im not sure if I should report this income received for the sale of the business in this lines. The business was opened in 2016 and sold in 2019. Thanks

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3 Comments 3
Level 15

https://proconnect.intuit.com/community/form-8949/help/reporting-bulk-asset-sales-in-proseries/00/37... and don't forget Form 8594.

Here's wishing you many Happy Returns
Level 15

Kinda depends on exactly what was sold.  Form 4797 would be a good starting point though.

Slava Ukraini!
Level 14
Level 14

Did your client just sell inventory (did the local police buy it 😁) or did they sell business, goodwill, building? Like Ironman said, depends what was sold.