Do you have to report the "sale, removal, or donation" of ANY business asset, even those that are old and have no real value, like a chair or old tools when you file your business tax return under the "Sale of Business Assets" section in TurboTax?

danielle-51 · ‎January 25, 2024

I don't know where you draw the line, if there is one to be drawn, as far as what they are wanting you to report.

I am feeling a bit confused.

DavidD66 · ‎January 25, 2024

If you sell a business asset, you definitely need to report it. If you have old, fully depreciated assets that you dispose of by donating or giving,/throwing away, technically you should report the disposal, but if the cost basis is zero, and the proceeds are zero, then reporting won't have any effect on your tax return as there will be no gain or loss. I will get it off your asset listing and depreciation schedules.

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DavidD66 · ‎January 25, 2024

If you sell a business asset, you definitely need to report it. If you have old, fully depreciated assets that you dispose of by donating or giving,/throwing away, technically you should report the disposal, but if the cost basis is zero, and the proceeds are zero, then reporting won't have any effect on your tax return as there will be no gain or loss. I will get it off your asset listing and depreciation schedules.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Do you have to report the "sale, removal, or donation" of ANY business asset, even those that are old and have no real value, like a chair or old tools when you file your business tax return under the "Sale of Business Assets" section in TurboTax?