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Hello and thank you for using Just Answer,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.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. The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction. The sale of inventory results in ordinary income or loss.
Except for assets exchanged under any nontaxable exchange rules, both the buyer and seller of a business must use the residual method to allocate the consideration to each business asset transferred. This method determines gain or loss from the transfer of each asset and how much of the consideration is for goodwill and certain other intangible property. It also determines the buyer's basis in the business assets. If you are trying to report the sale of the business yourself, you may find IRS publication 544 very helpfulhttp://www.irs.gov/publications/p544/index.html
I have read the same answer you gave me on other websites while I was searching for an answer so it is of no new help to me.
What I am trying to find out is, since I only sold half of my business and will remain in business with the other half, can the portion I sold be considered additional income rather than a capital gain as if I simply sold a piece of equipment? The answer you gave me seems to only cover a whole business sold.