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