What is the name of your state (only U.S. law)? NY
Last year, in January, I sold my business to my parents (who told me they posted a question here too about their taxes). The only "assets" the business had was the actual physical inventory, no plant, fixtures or equipment were ever owned by the business. I sold the inventory (below the value of what was paid for it) to my parents as I can no longer run the business with my health. How do I report I sold the business to the IRS and NY? Do i fill out the Profit and Loss section and just list the amount I was paid as "sales receipts" and cost of goods sold as the actual value of the inventory (though that would result in a Negative amount for the sales) and the IRS and NY will have to presume I closed the business as I can't find anywhere to check a box to say, "hey tax person, I sold the business". Please Help! Thanks!
Last year, in January, I sold my business to my parents (who told me they posted a question here too about their taxes). The only "assets" the business had was the actual physical inventory, no plant, fixtures or equipment were ever owned by the business. I sold the inventory (below the value of what was paid for it) to my parents as I can no longer run the business with my health. How do I report I sold the business to the IRS and NY? Do i fill out the Profit and Loss section and just list the amount I was paid as "sales receipts" and cost of goods sold as the actual value of the inventory (though that would result in a Negative amount for the sales) and the IRS and NY will have to presume I closed the business as I can't find anywhere to check a box to say, "hey tax person, I sold the business". Please Help! Thanks!
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