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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6167
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I took over my dry cleaning store business 6 years ago and

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I took over my dry cleaning store business 6 years ago and sold it in 2012 for $5k. How do I report the sale on my personal tax return? I was running it as a sole proprietor. Also, I did not have any assets in business. We decided the amount considering 6 month sales of the business.

Stephen G. :

Hello, my name isXXXXX & I'll be helping you today. My goal is to give you a complete & accurate answer that you can understand.

Stephen G. :

Did you pay anything for the business?

Customer:

No

Stephen G. :

Well, I'd report the sale on the Schedule D subschedule as "Sale of Goodwill - Dry Cleaning Bus" & report the $5,000. as a sale with no cost.

Stephen G. :

That would be under long-term gains

Stephen G. :

It is possible that depending upon your other income, the tax will be zero!

Customer:

Do I have to fill out any other form other than schedule D?

Stephen G. :

Just the subschedule for Schedule D - let me get the exact number for you I think it is 8695 but let me check- just a minute

Stephen G. :

No it is Form 8949

Stephen G. :

First you use the 8949 & then the numbers carry over to Schedule D

Customer:

ok, thank you very much for your help

Stephen G. :

U R Welcome

Stephen G. :

If you need to contact me again with any tax or financial questions, you can just ask for "Steve G" at the beginning of your question. Thanks again for using us for your tax and financial questions. You may get a short survey from the site; if it isn't too much trouble I would appreciate it if you would answer it; the survey results are used to rate our performance;

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