Legal Question in Business Law in Texas
Closing a business
What are the tax implications involved when closing a business, i.e. concerning property owned by the sole propriartorship, inventory remaining, capital purchases made tax-free?
Asked on 12/09/08, 2:56 pm
1 Answer from Attorneys
Eddy De Los Santos
Spain Hastings Ward Carey & Chambers
Re: Closing a business
If it is a sole proprietorship you already own all of the assets. So, if you close the business, you remain the owner of the assets until the assets are sold in liquidation. Generally, you will recognize a gain or loss on the sale of the assets at the time the assets are sold. You may have some additional losses for bad debt, obsolete inventory, etc.
If you have additional questions, please feel free to contact us to discuss with our tax attorney.
Answered on 12/09/08, 3:40 pm
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