Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-19-2010, 11:38 PM
Junior Member
 
Join Date: Oct 2010
Posts: 1
Question Business Assets Sold

If I sell business assets with no Capital Gains or Loss, do I have to claim the sale price as income?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-29-2010, 07:21 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
In general, you must classify your gains and losses as either ordinary or capital (as either short-term or long-term) when disposing of your business purpose assets;a business usually has many assets. When sold, these assets must be classified as capital assets, depreciable property used in the business, real property used in the business, or property held for sale to customers, such as inventory or stock in trade. You must do also this to figure your net capital gain or loss.
However, if there is no gain or loss generated or incurred, then the reamaining value,i.e., probably either book value or salvage value is part of your original cost. Your original cost( or part of the cost) is not your income.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When to claim items as assets, and when not to BobRoyAce Sole-Proprietorship 0 04-14-2010 06:46 PM
NJ S-Corp want to dissolve, been inactive since 2000, NO ASSETS emgconsulting S-Corporation 0 02-23-2010 12:52 PM
Dissolving S Corp ... What to do with Assets and Shareholder Basis amyoung S-Corporation 0 04-27-2009 07:23 AM
Total Assets Mistake on 2007 return arcteryx S-Corporation 1 02-06-2009 08:55 PM
Depreciation method for previously used assets used in business TaxGuru Depreciation 0 02-13-2007 10:04 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.