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:
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:
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