sole prop sale of assets only, not good will

[gunnersmom]

Hi, I've searched the message board and can't find this addressed.

Sold embroidery equipment along with supplies, tables, computers, etc.

No goodwill or intangibles involved.

I believe the only things necessary to file are a 4797 with the two embroidery machines and also maybe a Schedule D to list the other items?

Is an 8594 necessary if no intangibles like good will were included?

Also, cost basis on the machines, is the cost basis what the contract sold amount is on the agreement, or is it a sum of all the payments made? Ex: bought machine for $10,000, on a lease with a baloon payment at the end. Can I add all the payments I made together for five years (which includes interest) and the baloon payment to the cost basis, or is it just the $10,000 plus the baloon payment?

Thanks so much,

[Gretel]

I strongly advise you to seek professional help in your area. There are more issues involved.

[gunnersmom]

Thanks

Thanks. I really didn't want to do that. I had an accountant up to last year and then I found out his wife was doing my taxes. I like her and all, but she has a bad habit of "talking" if you know what I mean. I did my own taxes last year and found that it wasn't all that difficult. The problem this year is the sale of this equipment and the tax implications.

I have been reading the irs web site for quite some time and thought I could do it myself. I just hate to have to go to a stranger, but if I must, I must.

[Bird Legs]

Confidentiality

Ask the new tax preparer to see a copy of his privacy notice.

[gunnersmom]

Not a bad idea. I'm very sure my last guy didn't have one!