Hello and thank you for using Just Answer,
The sale of the business will need to be shown under the business tax
filing for the final year. Some of the money received may be ordinary and some may be capital.
A noncapital asset is property that is not a capital asset.The sale of a business usually is not a sale of one asset. Instead, all the assets of the business are sold. Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. The following kinds of property are not capital assets.
Stock in trade, inventory, and other property you hold mainly for sale to customers in your trade or business. Inventories are discussed in Publication 538, Accounting Periods and Methods. But, see the Tip below.
Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered or from the sale of any properties described in (1), above.
Depreciable property used in your trade or business or as rental property (including section 197 intangibles defined later), even if the property is fully depreciated (or amortized). Sales of this type of property are discussed in chapter 3.
Real property used in your trade or business or as rental property, even if the property is fully depreciated.
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. The gain or loss on each asset is figured separately. The sale of capital assets results in capital gain or loss.
Depending on the business entity, the sale may be directly shown on the personal return (Schedule C for a self employed individual).