Sale of business property

Forum|Forum|3 years ago
April 5, 2023
1 reply
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I have a client who sold his business property. I know he and the buyer must fill out Form 8594 Acquisition Statement. I know it is to be attached to the tax return. All the assets involved must be put in classes on the form. Do I put a sale price for each asset in the return showing it is sold? Also the seller is holding the note for the sale and has decided on the payment and interest amounts. Is it necessary to do an installment sale for this?

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Best answer by IRonMaN

Yes, you show a selling price for each of the assets sold, or you could delete the assets and just enter as one total showing sales price, cost, and accumulated depreciation. You may want to report an installment sale if it is beneficial to the seller, but if they sold assets that resulted in depreciation recapture that generated the gain, all of the gain would be reported in the year of sale anyway.

IRonMaNAnswer

Level 15

Yes, you show a selling price for each of the assets sold, or you could delete the assets and just enter as one total showing sales price, cost, and accumulated depreciation. You may want to report an installment sale if it is beneficial to the seller, but if they sold assets that resulted in depreciation recapture that generated the gain, all of the gain would be reported in the year of sale anyway.

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