Sale of Business

Forum|Forum|4 years ago
March 19, 2022
2 replies
0 views

I clicked the box for "I sold or disposed of my business in 2021" at the very beginning of the profile for my business in TurboTax Home and Business. At no point in the remainder of filling out my information did it ask for the sale price or calculate the taxes owed on the sale of the business. Am I using the wrong version of TurboTax or is it not possible to use TurboTax Home and Business when you get to the point where you sell. The business is a Sole Proprietorship and the entirety of the sale was Goodwill based.

TurboTax Home & Biz Windows

Best answer by ColeenD3

You would include the sale in Sale of Business Property.

Per the IRS, The purpose of filing the form is "Both the seller and purchaser of a group of assets that makes up a trade or business must use Form 8594 to report such a sale if goodwill or going concern value attaches, or could attach, to such assets and if the purchaser's basis in the assets is determined only by the amount paid for the assets."

This form is not available for electronic filing, so you will have to mail in your return.

Form 8594

To report the sale, follow these steps:

1) Wages and Income

2) Other Business Situations

3) Sale of Business Property

4) Other Property Sales

5) Select Sales of Business or Rental Property that you haven't already reported

ColeenD3Answer

You would include the sale in Sale of Business Property.

This form is not available for electronic filing, so you will have to mail in your return.

Form 8594

To report the sale, follow these steps:

1) Wages and Income

2) Other Business Situations

3) Sale of Business Property

4) Other Property Sales

5) Select Sales of Business or Rental Property that you haven't already reported

BrianM4Author

Thank you! After looking at Form 8594 it's pretty straight forward. Quick follow-up question: Do I have to snail mail the entirety of my return or can I file electronically and simply snail mail the Form 8594?

AnnetteB6

Some IRS forms are able to be filed on their own without being attached to a return, but Form 8594 is not one of them. You must file the whole return by mail to include Form 8594.

@BrianM4

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Rainycity91

Hi, On calculating cap gains on the sale of a laundromat do you have to subtract any depreciation that has taken in past years?

PatriciaV

Employee

Yes, the adjusted basis of the building would include accumulated depreciation since inception. This asset should have been reported on the business tax return each year in order to claim depreciation expense. If you haven't used TurboTax Business before, you'll need to enter the assets and the accumulated depreciation for each before you report the sale.

@Rainycity91

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"