How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Anne Your Own Question
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2355
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
5242771
Type Your Tax Question Here...
Anne is online now
A new question is answered every 9 seconds

I am selling my business and 't want to receive all the

Customer Question

I am selling my business and don't want to receive all the funds this year, for tax reasons. Who can I talk to for advice on this. My area code is 99507
Submitted: 6 months ago.
Category: Tax
Expert:  Anne replied 6 months ago.

HI

I'm Anne. I've been preparing taxes for 28 years and I'll be happy to help you.

When you sell a business, you are selling all of the assets of the business individually, so you will calculate the profit/loss of each asset. You will want to want to allocate most, if not all, of the purchase price to the capital assets that were transferred with the business. You want to do that because proceeds from the sale of a capital asset, including business property or your entire business, are taxed as capital gains. Please see below:

https://www.irs.gov/businesses/small-businesses-self-employed/sale-of-a-business

The easiest way to defer receipt of the purchase price to later years with an installment sale. This defers any tax due on the gain on the asset until you receive the payment. See below:

https://www.irs.gov/taxtopics/tc705.html

If you have found my answer helpful, please take the moment to rate positive by clicking on the stars.

It is ONLY through positive ratings that we are compensated for our time and knowledge.

Thank you for choosing justanswer.