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

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I am selling my business...
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: 1 year ago.Category: Tax
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Answered in 29 minutes by:
6/7/2016
Tax Professional: Anne, Master Tax Preparer replied 1 year ago
Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2,439
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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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

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Anne
Anne
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Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses

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