We closed our General Partnership for 2019. We reopened it as a Sole Proprietor for 2020.
How do I dispose of our Partnership's assets? I am being directed to Dispose it as "Sold". The amount Sold that I should put down is unclear to me. I read it can be taxed as Capital Gains. This is the last thing that we want. Can we just put down $1 for all sold amounts?
By the way, I scoured answers to questions similar to mine, but they use terms that I do not understand. Answers say to put "Tax Basis" as the amount sold. Other answers say to put "Stock Share Basis" as amount sold. I do not know what any of this means. The Partnership was 50/50. What number then do I put down as the "Basis"? Is that a number? Excuse me for not being a tax expert, not knowing what fundamental number a "Basis" is, so please translate any Tax Industry terms in your answer. I'm not an accountant or tax professional, hence why we invested in TurboTax, a do-it-yourself tax filing program.
Thanks!
@Andre2099-B The following thread has a recommended answer (in blue) that I suggest you read through carefully.
Unfortunately, partnership tax law can be extremely complex and TurboTax Business is primarily designed (as is product support) for relatively simple returns, or at least returns and situations that are not extremely complicated. Filing a final partnership return with a disposition of multiple assets would fall into the latter category and you might want to seek professional tax guidance.
Basis, generally speaking, is cost.
Adjusted basis, is cost minus depreciation.
@Andre2099-B The following thread has a recommended answer (in blue) that I suggest you read through carefully.
Unfortunately, partnership tax law can be extremely complex and TurboTax Business is primarily designed (as is product support) for relatively simple returns, or at least returns and situations that are not extremely complicated. Filing a final partnership return with a disposition of multiple assets would fall into the latter category and you might want to seek professional tax guidance.