Selling Your Business
- Selling Your Business
- Tax Aspects of Selling a Business
- Types of Business Property
- Tax Forms Used When Selling a Business
- Reporting Sale of Business on Form 8594, Asset Acquisition Statement
- Section 1231
- Computing a Net Section 1231 Gain and Loss
- Section 197 Intangibles and Recapture Rules
More Tax Topics
- Business Structures
- Start-up Costs
- Depreciation
- Car Expenses
- Home Office Deduction
- Travel Expenses
- Hiring Workers
- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Selling a Business: Sole Proprietorship
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Selling a Sole Proprietorship (Continued)
Accounting and Tax Services You May Need:
- Determining a selling price for your business.
- Reconciling bank accounts.
- Assistance in performing an inventory of:
- Merchandise held for sale to customers
- Inventory used in the manufacture of products for sale to customers
- Inventory used in the business (office supplies, shipping supplies, etc).
- Your attorney will need this information.
- Preparing an itemized list of equipment, furniture, and fixtures included in the sale.
- Your attorney will need this information.
- Identifying any intangible assets (Section 197 intangibles) included in the sale, such as franchises, trademarks, trade names, customer lists, and patient lists.
- Your attorney will need this information.
- Recording all the necessary bookkeeping entries to bring your books up to date.
- Preparation of financial statements (income statement, balance sheet).
- A serious prospect will want to see this information.
- Taxes:
- Preparing Form 8594, Asset Acquisition Statement.
- The selling price of your business must be allocated to the property included in the sale.
- The property included in the sale must be placed in specific asset classes indicated on Form 8594.
- As the seller, your gain on each asset class is based on the values included on Form 8594.
- The purchaser's basis for the property transferred is shown on Form 8594.
- Determining your tax liabilities.
- Preparing Form 8594, Asset Acquisition Statement.
- Preparing a payment schedule if the sale was an installment sale.
- This schedule will show:
- The amount financed
- The interest rate
- Number of payments to be made
- The amount of each payment, broken down by interest and principal
- The remaining principal balance after each payment.
- This schedule will show:
Next:
Selling Your Sole Proprietorship: Your Role in Selling Your Business
Related Links
- Beginning the Process of Selling Your Business
- The Role of Your Attorney
- Legal Services You May Need
- The Role of Your Attorney
- Selling a Group of Assets
- When Does a Group of Assets Constitute a Trade or Business?
- Types of Business Property
- What is Section 1231?
- What is the Section 1231 Tax Advantage?
- What Are Section 1231 Transactions?
- What is Not Section 1231 Property?
- Tax Forms and Schedules Used In Selling A Business
- How to Compute and Report a Net Section 1231 Gain or Loss
- Depreciation Recapture
- Nonrecaptured Net Section 1231 Losses
- Example of Section 1231 Computation
- About Form 8594 Asset Acquisition Statement
- Allocating the Sales Price of Form 8594
- How the Residual Method Works.
- What Are Section 197 Intangibles?
- Recapture of Amortization
- New Recapture Rules For Section 197 Intangibles After August 8, 2005
Copyright © 2008-2013 Larry Villano. All rights reserved.