@Phare47 wrote:
This will be for the 2023 taxes, Is that 1040 or do we have to do a schedule C?
You don't need to file a schedule C since you are not an ongoing business. Assuming the business was a disregarded entity previously, the income would just flow to your regular tax return anyway, and since you are not an ongoing business you would not report self-employment tax. You can just report the income portion of the sales proceeds as "other income".
Now, I will note that "other income" could be taxed as high as 37%, depending on your overall income. The recovery from the sale of the machine is depreciation recapture (in most cases) which is taxed as regular income but with a cap of 25% (in most cases). So if your other income puts you in the 32% or higher tax bracket, you might pay more tax on the machine than if you reported it as recapture. I don't know what to do in that situation, you may want to ask a tax professional. But I still don't think you file a schedule C.
