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The sale of a business is comprised of the sale of individual physical assets (if any) and the sale of intangible assets such as goodwill. You will need to tell TurboTax you've sold the business and then record the sale of any assets. If you claimed Section 179 deduction on any of the assets, there might be recapture income. But in general, the sale of fully depreciated assets is typically all gain.

To report that you sold your business, choose the Business tab in the TurboTax Home & Business header. Continue and click "I'll choose what I work on." Click Update beside Business Income & Expenses.

1. Select "edit" beside the business you sold.
2. Edit your Business Profile.
3. Check the box for "I sold or disposed of this business..." Continue to the page titled "Let's gather your business info.:
4. Scroll down to "Less Common Business Situations. Click Start beside "Sale of Business Property."
5. Check the box for "Sales of business or rental property that you haven't already reported."
6. Under this topic, work with each asset to report that it was sold. For fully depreciated assets, the sales price may be zero, as long as the total sales price equals the proceeds you received.

Note: If you're unsure whether or not you sold for a profit, answer "Yes." Enter the information, and TurboTax let you know.

Complete the sale information. Note blue links have helpful information.

For more help, see:

• TurboTax Tax Tip: Closing a Business
• IRS Pub 544 Sales and Other Dispositions of Assets.