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RUNNINGBAKER
Level 1

Selling a business asset disposal

I sold my S-Corp in 2020. I received a lump sum for the sale. In TT 'Asset disposal' it asks for the amount received for EACH individual piece of equipment. Is there not a way to list the total price that was paid for the equipment. It would take hours to list each item/price even if there was a way to determine these figures...but there is not. I do have the Total amount paid for all the equipment.

TIA

3 Replies
martinmarks
Level 10

Selling a business asset disposal

You have to file an 8594. https://www.irs.gov/pub/irs-pdf/f8594.pdf 

You're going to need help with this so get a tax pro.

ThomasM125
Expert Alumni

Selling a business asset disposal

The portion of your gain that is associated with depreciation is taxed as ordinary income, while the rest is taxed as capital gain income, so it is necessary to factor in the assets when you report the sale.

 

If you could compile all of the depreciation you deducted over the years and the cost of the assets you purchased you could apportion part of the sale proceeds to the assets sale and you would have the components necessary to properly account for the sale.

 

 

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martinmarks
Level 10

Selling a business asset disposal

Once again you need a tax pro for a sale like this. You and the buyer EACH need to file an 8954 if goodwill attached to any of the assets and the forms have to agree. There is more than reporting the assets as sold.

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