USA Business Asset Sale

[JohnEA]

Wanting to make sure my understanding is correct on a 4797. How would you class these?
Equipment, Furniture and Fixtures
Goodwill
Stock in trade ( This goes on the Sch C as a zeroed balance correct?)
Website/Domain Name
Source code for Website
Registered Business Name/Entity
Non Compete Agreement
Consultation Agreement

Thanks

Also, if someone has website expenses they want to amoritize those can be added under section 179 correct?

 

[Drmdcpa]

Equipment
Furniture
Goodwill
Stock in trade (are you trying to say inventory)
Website/Domain
Source Code
Trademark
Non compete
Non employee compensation

179 can be used for software under certain conditions.

 

[JohnEA]

Thanks. Yes inventory.

I'd expect inventory gets zeroed out and sale price of it minus basis, gets reported as if it was just sold retail on the SCH C. Is that correct?

 

[Drmdcpa]

Inventory and consultation contract are ordinary income. Both might also cause self employment income.

 

[JohnEA]

Thanks for the reply.

On the 4797, can I lump assets together, and their basis to make one entry? Or does each one need to be separate? Ie website domain, and business trade name.

Also, 4797 should flow to SCH D for goodwill. But where would it be best to correctly post it directly on Sch D?

 

[Drmdcpa]

You can only group similar assets on 4797. And the sale must flow thru 4797 no direct entry on D.