Where do I enter sale of businesssI have reported on schedule C that I sold mid 2022 ?

Forum|Forum|2 years ago
May 8, 2023
1 reply
0 views

Where do I enter in Turbotax the sale of business which has land and building ?

TurboTax Self Employed Online

Best answer by Critter-3

The sale of the business can be reported in several places depending on what was actually sold ... inventory goes on the Sch C, the assets (building/land) are sold off in the asset section where they should have been listed, etc. Did you and the buyer fill in the form 8594? That form helps you to know where to enter what ... https://www.irs.gov/forms-pubs/about-form-8594

Critter-3Answer

Carl11_2

Employee

The below is "GENERAL" guidance.

Sale of SCH C Business

At the beginning of the business section one of the screens has a selection on it for "I sold or otherwise disposed of this business in [tax year]. You must select that option and press on "as if" you still own the business.

When you get to the business summary screen, you have to work through income and expenses, even if those amounts are all zeros.

Next, you must work through the Business Assets section, and if any assets are listed there you must show your disposition of each and every asset one at a time. Start working through the first asset and on the screen that ask, indicate that YES you DID STOP USING this asset in [tax year]. Then continue working the asset through to report it's disposition - be it sold, removed for personal use, given away, stolen, destroyed, whatever.

Note that you must show your disposition for each and every asset listed, individually.

After you're finished with all the assets, if your business claimed ANY vehicle use at ANY time you were in business, then you will need to work through the business vehicle section to show the disposition of the vehicle - even if that vehicle was a personal vehicle not used 100% for the business. Most likely, your disposition of the vehicle would be "removed for personal use", because while not unheard of, it's rare that the sale of a business reported on SCH C would include the vehicle in that sale too.

Finally, if your business carry's inventory and you still have unsold inventory, then you must make your EOY inventory balance $0. To do that, on the COGS screen simply indicate that all remaining inventory was “removed from the business for personal use” and this will make your EOY Inventory balance $0.

If the inventory was included in the sale, then you'll report the sale of that inventory for a price that is "a portion of" your sales price.

Once you've completed all the above, just work it through to the end, and this will be the last year you file a SCH C for this specific business that you no longer have.