Donny Posted February 7, 2008 Report Share Posted February 7, 2008 client opened and closed his business in 07, I'mm filling Sec c and all that goes with it. but is it anything special I need to know in regard to closing, other than if he sold eq. etc ? thanks Quote Link to comment Share on other sites More sharing options...
OldJack Posted February 7, 2008 Report Share Posted February 7, 2008 Well lets see... he opened and closed in the same year so there would be no depreciation allowed or allowable on anything. There would be no deduction for such equipment. Therefore, he would have a gain or loss from the purchase price and sale of any equipment. Such equipment sale would be reported on form 4797. Any equipment he kept and did not sell would be a tax-free conversion to personal and would just keep its tax basis of purchase price until the year he sells it. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 7, 2008 Report Share Posted February 7, 2008 >>client opened and closed his business in 07<< Make sure he really WAS in business. If his only expenses were summer trips to Florida and California, or a bunch of nice cameras or something that he is keeping, and he had little or no related revenue... you know what I mean. Quote Link to comment Share on other sites More sharing options...
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