How about 1 or 2 years later instead?
2007-07-01 04:26:39 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Buying and selling a business is more complex than buying and selling stocks. Your business has many kinds of assets, which will be separately accounted for when you sell. If you sell a capital asset at a gain, you will pay capital gains tax. If you sell a depreciable asset at a gain, you may have ordinary gains as well as capital gains. If you sell inventory, you have ordinary gains or losses.
You may have gains on some of the business assets, and losses on others which offset gains.
You may add to your initial investment, changing the basis of assets, which will effect gains or losses.
The time period between purchase and sale will effect whether your capital gains is taxed as long-term (more than one year) or short term (one year or less). If you hold depreciable assets for more than one year, some of the gain will become ordinary income.
2007-07-01 10:09:00 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Yes you would have a capital gain and over 1 year it is a long term capital gain. You could do a 1031 exchange to put the tax off until the future.
2007-07-01 04:30:03 · answer #2 · answered by shipwreck 7 · 0⤊ 1⤋
For residential property, if it's more tan 2 years since you bought it, you don't need to pay capital gains upto a limit. It's benefit given to residence. But time doesn't matter for business. Even if you sell tomorrow, next year, 10 years later or more, you have to pay capital gains tax if you get more than what you paid for.
2007-07-02 09:46:51 · answer #3 · answered by James 2 · 0⤊ 0⤋
Hmmm...overlook approximately maximum of what 'halestrm' pronounced and pay greater interest to what 'Nstarz' pronounced. the two the customer and the seller of a business company are required to report a sort 8594 to checklist what area of the acquisition value is distributed to each (or sort of) asset(s). And, those varieties might desire to agree. What 'halestrm' pronounced approximately increasing the inventory is Bull____. increasing the inventory may well be an basic earnings, which often skill greater tax than a capital earnings. (Yea, perfect ask a CPA approximately taxes...maximum CPA's are auditors...in case you want to comprehend approximately taxes ask an Enrolled Agent, or a minimum of a CPA that focuses on taxation). it sort of feels to me which you do no longer understand a capital earnings tax is often greater effective than an basic earnings tax. it relatively is the two one or the different it relatively is in no way (properly, many of the time...it would desire to be the two with firms and such in contact) the two. Or, possibly you have become business company sources puzzled with the hot regulations for merchandising an area of residing.
2016-10-03 08:27:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Maybe, maybe not. The sale of a business is a complex transaction. The various assets have to be accounted for by asset class in the transaction. Inventory must be accounted for and there are considerations for good will and other intangibles. From the minimal information provided it's not possible to say if there will be any tax liability at all.
2007-07-01 07:39:33 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Yes. There is a capital gains tax on any business sale.
2007-07-01 04:33:27 · answer #6 · answered by βread⊆ℜumbs™ 5 · 0⤊ 1⤋
Yes, Long Term
2007-07-01 04:35:16 · answer #7 · answered by chick_fin 2 · 0⤊ 1⤋
Yes and yes.
2007-07-01 05:17:57 · answer #8 · answered by Judy 7 · 0⤊ 1⤋