Ok ... so let's look at the form 8594 instructions ...
Class IV assets are stock in trade of the taxpayer or other property of a kind that would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of its trade or business.
Class V assets are all assets other than Class I, II, III, IV, VI, and VII assets.
Note.
Furniture and fixtures, buildings, land, vehicles, and equipment, which constitute all or part of a trade or business (defined earlier) are generally Class V assets
SO FOR THE CLASS IV ... that is simply a sale of inventory so it goes on the Sch C as ordinary income. Nothing more than that.
AND FOR THE CLASS V ... you will sell off the assets you have on the books. Theses are usually listed as assets and have been depreciated.
