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tlemme
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Sold a business

How do I 100% depreciate my assets as we sold the business
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DianeW
Expert Alumni

Sold a business

As you go through the assets in your business section you will say each one is sold.  Follow the instructions below to report your sale.  

Any amount of the costs that have not been depreciated will be used as the adjusted basis against the sales price of each asset to reduce the gain on the sale, which is how the balance of the deduction is used.

Your buyer must treat the purchase they way you treat the sale.  Allocating too much to inventory (more than what you paid for it) will be a tax disadvantage to you because it would be taxed at your regular tax rate.  Other assets will have a better tax rate with the exception of any depreciation recapture (gain to the extent of depreciation used).

The sale of inventory (if applicable) takes place on the Schedule C.  It never changes character during a business sale.

The sale of any other asset (tangible or intangible) takes place on the sale of business assets section.

  • To record the sale of the inventory/cost of goods follow the instructions here in TurboTax Self Employed:
    • My Account > Tools > Topic Search > Type business > Go
    • Continue to enter the amount of the proceeds that applies to inventory
  • To record the sale of business assets follow the instructions here in TurboTax Self Employed:
    • My Account > Tools > Topic Search > Type sale of assets, self employed business > Go
    • Edit beside your business > Select Business AssetsAssets Being Depreciated
    • Continue to follow the screens to sell your assets
    • Click the screenshots attached to enlarge and view for assistance.
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