Reporting Business Sale
Subject: Tax question
I closed my short lived business at the end of 2007. I opened it in August of 2006. I sold the business at a cost that I used to pay off my creditors. How do I report (which forms do I use) that the moneys I received for the sale of my business was used to pay off a debt. The debt was originally created from purchasing equipment that I used for my business.
This is far too complicated an issue for you to attempt to report on your own, especially in regard to the proper treatment of recaptured depreciation.
You need to work with a qualified professional tax preparer, who can ensure that everything is reported properly on your tax returns.