Pacun Posted March 31, 2019 Report Share Posted March 31, 2019 Auto repair was sold for $40K. What they were selling was the equipment they had and possible some good will from their few clients. I have about 4 machines and about 6 other equipment being depreciated and they will be sold at a profit. I have been checking the bulk sale tab and I was hoping that I would have the 10 items listed and I would just say "I sold these 10 items for $40K" and the sale was going to be reported to 4797 and Sch D, but I think I have to list one by one. Any guidance will be appreciated. Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 1, 2019 Author Report Share Posted April 1, 2019 Any one? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 1, 2019 Report Share Posted April 1, 2019 I had a sale recently of rental property with the mix of 1250 and 1245, about 15 items. I made a spreadsheet with an allocation of expenses. Listed selling price and total expenses. Col 1 item; col 2 (SP*%Basis) col 3 Cost; Col 4 (%basis) Col 5 (S/Exp*%Basis); Col 6 Gain/Loss; Col 7 Recap dpn amount; Col 8 Adj G/L. With the formulas input, it was easy and the bottom lines (total selling price, total expenses, total recaptured dpn came out perfectly. PM me if you want the spreadsheet. I actually developed this several years ago for another sale to allow the input for selling price and expenses for each item as the bulk sale thing wasn't working for me. All the items went to the correct place on 4797. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted April 4, 2019 Report Share Posted April 4, 2019 I use to use the bulk sale all the time but can no longer figure it out to make it workable! instructions? Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 8, 2019 Author Report Share Posted April 8, 2019 Witaxlady. Bulk sale seems to be easy. You open the first Asset and select Bulk sale, then you create a new entry. I called it SOLD ITEMS and you enter the selling price and 1245 and answer all the few questions. Then you move to the second asset (same type, 1245) and you click "bulk sale" then select SOLD ITEMS and a few question and you do that with every single item. Everything flows to 4797. This is the answer I got to my question which is very good for a sole proprietorship: "the sale is treated as the sale of the separate and identifiable assets of the business. As such, the $40K has to be designated to inventory and other items sold (if applicable). This allocation must match Form 8594, which is the Asset acquisition statement. The sale of inventory would be reported on Schedule C, assuming this is a sole proprietorship. Report the sale of the business assets on Form 4797" Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted April 10, 2019 Report Share Posted April 10, 2019 why Thank you very much! Quote Link to comment Share on other sites More sharing options...
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