Question

How do I show gain on sale of assets?

Forum|Forum|4 years ago
January 28, 2022
2 replies
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In 2021 I sold my business via an asset sale. I have used Turbo Tax for years so I have an impressive list of fully depreciated equipment that is carried forward every year, as well as, about 10 more items that are not fully depreciated. Do I have to go through each piece of equipment and mark it paid, and then allocate a portion of the sale price to that individual piece of equipment, or is there a way to do this as an aggregate? Also which tax form will this information end up on?

TurboTax Business Windows

A

AmeliesUncle

@Khari64 wrote:
Do I have to go through each piece of equipment and mark it paid, and then allocate a portion of the sale price to that individual piece of equipment,

Yes.

It will show up on form 4797,

Rick19744

Employee

Additionally, the buyer and seller should have completed a form 8594. This form is then included with your return.

You would use this as a beginning point in allocating your sales price to the assets sold.

By way of simple example; If you had $100,000 of the sales price allocated to Class V assets, you would use this amount and allocate the $100,000 to all the Class V assets you have been depreciating. I would recommend allocating the $100,000 based on original cost. You will have to then use this allocated amount in TT for each asset.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.