If you sold your inventory as part of a sale of your business, the portion of the sale proceeds that was applied to the inventory would be reported as sales, similar to if you sold it to a customer. In TurboTax, you would simply report the sale amount as income and report the ending inventory as zero, which would result in the cost of it being deducted as purchases.

The sale of the assets would be reported individually by applying the portion of the sales proceeds that applied to each asset to that asset, in which case the asset cost would be netted against its accumulated depreciation which would result in a gain or loss on sale of business assets. In TurboTax, you would bring up each asset and indicate that you sold it and enter the sales proceeds equal to the amount the purchaser paid for each asset.

It is possible that you did not allocate the business sale proceeds to the inventory and individual assets when you negotiated the sale of the business. If not, you will need to do this using a reasonable method, such as estimated fair market value of each asset.

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A

Anonymous_

Employee

Further, along the lines of @ThomasM125's post, if you sold inventory and assets for which goodwill or going concern value attaches (or could attach), then you and the purchaser both need to prepare and file Form 8594.

See https://www.irs.gov/instructions/i8594