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integrityhminsp-
New Member

Am selling a business. How to determine capital gains? How to determine amount of tax owed?

How do I determine capital gains from business sale?
How do I determine amount of tax owed on capital gains?
3 Replies
Rick19744
Level 12

Am selling a business. How to determine capital gains? How to determine amount of tax owed?

We need way more information than has been provided:

  • Entity type
  • Type of sale; asset, stock
  • Was there a purchase agreement
  • What type of assets were in the business
  • Any covenant not to compete involved
  • Most likely additional questions will come up as information is provided
  • Finally, it may be in your best interest to have a one on one with a tax professional at some point
*A reminder that posts in a forum such as this do not constitute tax advice.*
Mike9241
Level 15

Am selling a business. How to determine capital gains? How to determine amount of tax owed?

iI would suggest you seek the advice of a tax pro who can go over both your personal and business situations to give the best advice for minimizing your tax burden. 

Critter-3
Level 15

Am selling a business. How to determine capital gains? How to determine amount of tax owed?

Agreed ... using a local professional would be wise ... you have to fill in and file  a 8594 form  that both parties agree on and shut down the business if needed ... these things can be compicated if you don't know  what you need to do.

 

https://www.irs.gov/newsroom/what-if-i-close-my-own-business

 

https://www.irs.gov/pub/irs-pdf/f8594.pdf

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