Tax Law (Questions About Taxes)/4797 versus 8949

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Question
I sold some furniture, equipment, etc.,that I had used in my business.  These assets were not inventory, they were used to conduct my business.  All assets were fully depreciated and held for several years, so long term.  The contract for sale was in 2007 but I did not get paid anything until 2014.  I expect further payments in 2015 forward, assuming that the buyer does not file bankruptcy.

I cannot figure out whether to use 4797 or 8949 (or even 6252 since payment will be made, if at all, in installments over a period of years).  If I use either 4797 or 8949, do I also file Schedule D.  The 1040 Lines 13 and 14 seem to require entries for both Schedule D and 4797.

Am I confused enough that I should get a CPA?

Answer
Neil,

Thanks for your question.

Since it is a business asset, you wiil report the sale on Form 4797. Since it is also an installment sale, you must use form 6252. It will all end up on Schedule D.

If you don't know what you're doing , I'd recommend a good CPA or Enrolled Agent.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

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 www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

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.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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