Sale of business asset

[toddrub46]

I sold a business asset during 2023. It took a while to get an offer and in the meantime I had to continue paying insurance premiums and storage charges. Should these charges be shown as "expense of sale" on Form 4797 reducing the gain, or reported on Schedule C on the appropriate lines. The asset was taken out of service pending sale. In prior years these costs were obviously reported on Schedule C as an ongoing business cost. 

[Critter-3 · Accepted solution]

It is an ongoing business expense just like the prior years.  

[toddrub46]

Thank you for the quick response. My only reservation is that I was in the process of winding down the entire business, not just selling this particular asset. It was used for part of the year and then put up and held for sale. 

[CatinaT1 · Accepted solution]

I would consider this an operating expense not a selling expense. 

[toddrub46]

Thank you for the quick response!