I am selling an espresso stand what taxes must I pay?

Question

I have $30,000 is debt/loan that must be paid off. The remaining blance is 30,000. It is filed under a partnership in Washington. What taxes must be paid? Thanks

Answer 1

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Answer 2

This is a very involved question. From the information given it is impossible to determine if you will have a taxable gain. If you do have a taxable gain it could be taxed as an ordinary gain, depending on what part of the sale created the gain.

When a business is sold it is not a lump sum sale of one item. A form 8594 is required from both parties involved. This form places a value on all of the asset categories sold. This will determine what gain or loss you have in each category, as well as the starting basis for the purchaser.

I suggest that you talk to a tax professional (an Enrolled Agent or a CPA that specializes in taxation) in your area.

Hope this helps.