Sold business

Forum|Forum|3 years ago
April 7, 2023
1 reply
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I sold my share of a business on 01/01/2022. There was no property or buildings involved in the sale and I sold it at a loss.

I have tried to use the sale of business in the income part of the Deluxe version but when I hit the next it tells me that, (The sale did not result in a gain. Report here only sales of property you made a profit on.) I understand that this section is in the income tab but i cant find anywhere else to enter Sal of Business Where can i go to enter the sale of business on T-Tax besides in Wages and Income section?

AliciaP1

You say your "share of a business", meaning it was either a multi-member LLC, a partnership, or an S-Corp. Any of these entities would have issued you a Schedule K-1 with the filing of their return for 2022 if the sale actually happened in 2022. Entering that form will prompt the interview questions you need to report the sale.

If you have not received the Schedule K-1 yet, you should contact the company to see when the schedules will be issued. You may need to file for an extension so you can accurately report your situation.

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cliffwinegarAuthor

I failed to mention that the payments are spread over two years.

AliciaP1

How you receive the payments for the interest does not matter, especially if you sold the interest for the amount of your basis and therefore do not have a gain or loss. You still need the Schedule K-1 for 2022, which are required to receive because you did own an interest in the business during 2022, in order to correctly report your transaction.

@cliffwinegar

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