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Taxes when Selling Sole Proprietership

by Cincy, Window Shopper

  • Created: August 23, 2009, 2:24 pm
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3 comments

I'm potentially selling a sole proprietership in the next month.

Are the proceeds from the sale considered as personal income for tax purposes?

 

Or are they considered capital gains?

 

Obviously I'd like to have them considered capital gains if possible due to the lower tax rate.

 

Any advice?

Tags: Discuss Popular Topics, Filing and Paying Taxes
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jbeidle | Contributor | 8/24/2009 - 9:29 pm

It really depends on the composition of your sole proprietorship business ie are there assets included in the sale?
Professional Web Site: http://TaxPanningStL.com

Cincy | Window Shopper | 8/26/2009 - 3:49 pm

Show Replied Text…
It really depends on the composition of your sole proprietorship business ie are there assets included in the sale?
Thanks John.  I'm selling a website that has not generated revenue.  So very little real assets besides domain, content, and code.   Thoughts?

jbeidle | Contributor | 8/26/2009 - 9:11 pm

Show Replied Text…
Thanks John.  I'm selling a website that has not generated revenue.  So very little real assets besides domain, content, and code. Thoughts?
A domain name is a property and eligible for capital gain treatment. Content and code is not as easy.
Professional Web Site: http://TaxPanningStL.com