Question

Sale of single owner llc

Forum|Forum|5 years ago
January 10, 2021
2 replies
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I'm a single owner llc and I sold the business as an asset sale.

Sale price 300000

Net proceeds 265000

Trying to account for the capital gains on the sale. Assets are categorized as follows:

Fixed assets 59000 assortment of assets grouped together all fully depreciated.

Leasehold improvements: 89000 depreciated over thirty years, 15 years left.

Intangible asset 25000 franchise fee paid.

Point of sale system 19000 section 179 asset. fully depreciated.

I know I have to recapture depreciation and recognize and ordinary gain. What is the best way to allocate the sale to maximize capital gains. I am using tubo tax to do my taxes.

TurboTax Live Self-Employed Online

M

Mike9241

i assume the amounts are the original cost basis. TT will not help you

It's up to you and the purchaser to determine the allocation of the sales/purchase price.

you and the purchaser must attach form 8594 to your tax returns. if the forms don't agree an IRS audit is possible. Failure to file might be considered the filing of an incomplete return which extends the statute of limitations.

I strongly advise you to consult a pro.