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Reporting sale of business property

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W

wford

Guest
I had a small business that I closed in 2001. I had lot of tools and equipment that I had depreciated and have been selling off piece by piece. Does each item/sale have to be listed individually or can I just bunch together to report the sales? Everything was held for over a year.
The form 4797 only has a few spaces.
 


L

loku

Guest
The treatment of gain or loss on the sale of a business is a bit complex because different classes of assets must be treated differently. However, to answer your specific question, you can bunch together the sales of small tools and equipment and show totals.

For the proper way to determine gain and loss on the sale of your business, see IRS Publication 544 (2001) SALES AND OTHER DISPOSITIONS OF ASSETS, , which you can download for free at the IRS site at: http://www.irs.ustreas.gov/forms_pubs/index.html

If there are larger assets, or if there are not enough spaces on Form 4797 (or any other form) for your needs, specify of the proper line of the form "see Schedule x", and include the details on an attached schedule.
 

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