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!
