In another post http://early-retirement.org/forums/i...?topic=13815.0
I inquired if anyone has ever sold a business.
My new question is, what are the tax consequences of doing so. From what I can read capital gains will apply to some of the sale. If the business sells for $135000 after broker commisions, how are taxes figured? Assetts of aprrox. $40000 that are totally depreciated, inventory of approx. $15000 that is paid for, and the remainder I guess being goodwill of $80000. This is an ongoing retail business.
Any input would be appreciated. I know I'll need a tax advisor, but in the mean time I am wondering. The IRS site was totally confusing.