Am selling a business. How to determine capital gains? How to determine amount of tax owed?

Forum|Forum|3 years ago
September 8, 2022
2 replies
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How do I determine capital gains from business sale?
How do I determine amount of tax owed on capital gains?

TurboTax Online

Rick19744

Employee

We need way more information than has been provided:

Entity type
Type of sale; asset, stock
Was there a purchase agreement
What type of assets were in the business
Any covenant not to compete involved
Most likely additional questions will come up as information is provided
Finally, it may be in your best interest to have a one on one with a tax professional at some point

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Mike9241

iI would suggest you seek the advice of a tax pro who can go over both your personal and business situations to give the best advice for minimizing your tax burden.

Critter-3

Agreed ... using a local professional would be wise ... you have to fill in and file a 8594 form that both parties agree on and shut down the business if needed ... these things can be compicated if you don't know what you need to do.

https://www.irs.gov/newsroom/what-if-i-close-my-own-business

https://www.irs.gov/pub/irs-pdf/f8594.pdf