topic Sale of Bookstore in Get your taxes done using TurboTax

Sale of Bookstore

sjmurphy1088 — Fri, 27 Feb 2026 19:20:15 GMT

We sold a Schedule C bookstore business in 2025. The price was a slight premium over the value of the inventory. There were fully depreciated assets in the store – shelves, chairs, desks, computer software, etc. Does the depreciation need to be recaptured, and taxed as ordinary income, or is the full gain a capital gain?

Where do we enter this information?

Re: Sale of Bookstore

PatriciaV — Sun, 01 Mar 2026 22:54:24 GMT

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.

Select "edit" beside the business you sold.
Edit your Business Profile.
Check the box for "I sold or disposed of this business..." Continue to the page titled "Let's gather your business info.:
Scroll down to "Less Common Business Situations. Click Start beside "Sale of Business Property."
Check the box for "Sales of business or rental property that you haven't already reported."
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:

Re: Sale of Bookstore

sjmurphy1088 — Wed, 04 Mar 2026 21:26:59 GMT

Thanks. This was very helpful.

I also clicked on the link you provided for Turbotax tax tip: closing a business. This referenced a Form 8594: Asset Acquisition Statement under Section 1060. This form is not available in Turbotax Home and Business. The same information seems to appear on form 4797, which is included. Is that sufficient to only include the information on form 4797? If Form 8594 is required, I am not sure how I would do that since I file electronically with Turbotax.

Re: Sale of Bookstore

MaxA1 — Fri, 06 Mar 2026 04:42:43 GMT

Form 4797 is sufficient. Form 8594 is informational and helps the IRS keep track of what was sold and to who. Although it's recommended to include this form, the IRS won't come knocking at your door if you don't file it.

Re: Sale of Bookstore

AmeliesUncle — Sat, 07 Mar 2026 00:17:00 GMT

@MaxA1 wrote:
Form 4797 is sufficient. Form 8594 is informational

No, Form 8594 is required. The IRS isn't asking for that as as optional form and the instructions even say "must" file (under the certain conditions).]

Just because TurboTax does not provide that required form does NOT mean it is optional.

Shame on you for saying it is optional and shame on Intuit for not providing a required form.

Re: Sale of Bookstore

Steve-F — Wed, 08 Apr 2026 18:49:38 GMT

Just went thru this on Turbo Tax Home and Business. True, 8594 is not included in filing. I went to IRS website and completed the form and printed. Then in Turbo Tax you have to change the Profile of your Business and mark that you sold your business. Then under uncommon situations, you fill in that sale info. It generates a form 4797 for Sales of Business Property. Complete that info. Then after you efile, TurboTax tells you that you are not done. You print a form 8453 Transmittal that has Form 8594 checked off. Then you mail 8453 and 8594 to the address on the Transmittal. It was actually very easy.

Re: Sale of Bookstore

sjmurphy1088 — Tue, 14 Apr 2026 00:51:12 GMT

Thanks. I was hopeful that this would work for me. I followed the exact same steps you described, and also use Turbo Tax Home and Business. I just e-filed, and the return has been accepted by the IRS. I did not get the prompt you mentioned, and there is no Form 8453 transmittal in my forms. I can pull up that form, but it is blank, and doesn't show form 8594 to even manually check it. Is there another step? Did the form 8453 appear immediately after you e-filed?

Thanks