posting sale of inventory from partial sale of business

Forum|Forum|5 years ago
September 1, 2020
2 replies
20 views

How do I post sale of inventory as partial sale of business? I put on 4797 and it is showing as long term capital gain

Lacerte Tax

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Best answer by abctax55

Sale of inventory (in bulk) is no different than selling it bit by bit over time.

It's ordinary income. It goes on the same line regular sales in the normal course of business would go.

abctax55Answer

Level 15

Sale of inventory (in bulk) is no different than selling it bit by bit over time.

It's ordinary income. It goes on the same line regular sales in the normal course of business would go.

HumanKind... Be Both

qbteachmt

Level 15

How is it "as partial sale of business?"

They sold out a specific product line and intend to stop that activity? There is no tax provision for this. Did they sell something else, that makes this "part of the business?"

Don't yell at us; we're volunteers

T

teresa1Author

Level 3

client had 2 store front locations and sold one of the locations with inventory and equipment

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