Tax Law (Questions About Taxes)/Sale of Sch C


My questions pertains to the filing requirements from the sale of a Schedule C business.

It was a barber shop, total sale price was $5,000 and basically all for the assets.

As far as I can see, the only filings required would be the Schedule C to report income for the year, Sch D for sale of business and Filing of Form 8594 – Asset Acquisition Statement which I file with my Form 1040.

Is there any other filings that I need to do related to the sale of the business?
Thank you.


Thanks for your question.

First, you cannot sell a Schedule C business, so you are merely selling the assets of the business.  And, since you are selling business assets, you need to complete Form 4797.  This may or may not involved the inclusion of Schedule D, depending on the nature of the assets sold.  Normally, business assets are not considered capital assets so a Schedule D may not be needed.

Form 8594 is needed only if there is a chance that there may be some goodwill involved in the sale of the assets.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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