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PDtax, CPA firm owner
Category: Capital Gains and Losses
Satisfied Customers: 4506
Experience:  Tax professional and business consultant for 34 years
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I am planning to sell my small business for $650,000. Of

Customer Question

I am planning to sell my small business for $650,000. Of this, $325,000 is real estate, which I will be selling at a slight loss, the remaining $325,000 is the value of the business. Will I owe capital gains on this $325,000 value of the business??
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and will assist.

Expert:  PDtax replied 1 year ago.

It is likely that much of your business sale will be capital gain on the gain. There can be ordinary income components. It depends on the assets you are selling.

Expert:  PDtax replied 1 year ago.

Businesses are sold as a list of different assets, like accounts receivable, inventory, a customer list, and many other components. Once you determine the assets you are selling, you allocate the purchase price to each. Some are ordinary income, some capital gain.

Thanks for asking at just answer. Positive feedback using our rating scale is appreciated. I'm PDtax.