Sole selling businesses

[Unregistered]

Client sold three businesses in Aug 2005. In past, previous preparer filed three sch "C" under same federal ID. Since client sold all, I am thinking to file just one Sch C for 2005. Do you see any issues?

I will allocated selling price to each asset and figure gain or loss.

Thanks

[Unregistered]

Client sold three businesses in Aug 2005. In past, previous preparer filed three sch "C" under same federal ID. Since client sold all, I am thinking to file just one Sch C for 2005. Do you see any issues?

I will allocated selling price to each asset and figure gain or loss.

Thanks

Make sure you add all other related items.

[Unregistered]

One Question

Client sold three businesses in Aug 2005. In past, previous preparer filed three sch "C" under same federal ID. Since client sold all, I am thinking to file just one Sch C for 2005. Do you see any issues?

I will allocated selling price to each asset and figure gain or loss.

Thanks

Were all businesses sold at the same time?

[Bees Knees]

Client sold three businesses in Aug 2005. In past, previous preparer filed three sch "C" under same federal ID. Since client sold all, I am thinking to file just one Sch C for 2005. Do you see any issues?

For a Schedule C business, you simply report each asset sold on the 4797 as a separate asset and inventory on the Schedule C. You would also file Form 8594 if all the assets were sold as a group of assets making up a trade or business. The buyer would also file a Form 8594 using the same numbers. TTB, page 25-3 gives you a chart on how the buyer and seller treat the sale of each asset per category.

As to multiple Schedule Cs, I think you should continue to treat each Schedule C as a separate business. IRS wants a separate Schedule C for each activity. I don't think the fact that the t/p was using the same EIN for each has any relevance.