Once again, I will reiterate that sitting down with a tax professional where you can have a one on one discussion would be significantly better. We have very limited information or understanding of the business.
As a follow-up to your response:
- As stated previously, class IV and V items are handled differently and you have not indicated what that split is.
- We don't know how you have handled what you are calling "consumables".
- Are these expensed when purchased?
- Are these sold as part of your services?
- Without a clear understanding of these items, it is not possible to provide direction as to where these go on the tax return.
- As noted in bullet one, the purchase price allocated to these items is important.
- Other responses have shown where to address class V property within TT.
- Even though the equipment is fully depreciated, you will need to allocate the value associated with the class V property to all the assets.
- You will need to indicate in TT what depreciation has been taken.
- You will have ordinary income recapture to the extent of all depreciation previously taken.
- Class VI and VII property will be treated the same.
- As stated previously, unless you purchased either an intangible or goodwill in a separate transaction, this category will have a zero basis.
- As stated previously, these assets will be reported on form 8949 which will then flow to Schedule D
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
