Normally when you sell the business you need to allocate the sale proceeds to the various assets sold.
For depreciated assets you need to determine the adjusted cost basis of the assets (which is the cost minus depreciation claimed). Your gain or loss is sales price allocated to assets minus the adjusted cost basis. Normally if the assets are fully depreciated than this would result in a gain.
Inventory sale will be reported and the purchase cost of the inventory will be reported. so the net amount would be a profit or loss depending on the case.
Any sale amount allocated to goodwill will be taxable as a long term capital gain. If you bought the business and paid for goodwill than you must have amortized the same over a period of time and hence you will have to determine the adjusted basis of goodwill to determine the gain or loss.
Normally gain on sale of depreciable assets is taxed as ordinary income to the extent of depreciation claimed. Balance gain is taxed as long term capital gain.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.