Any accountants out there?

[Bill in SD, CA]

Be surpised with an answer but what the hey.

Doing my taxes for last year and have question.

Sold my business in 12/02.

Business was a corporation and only sold the assets of the business and not the corporation.

There is still open depreciation left on the balance sheet in fixtures and equipment.

Do I need to journal that somewhere and if so to where?



Bill

[NeoStarO1]

There are several entires you need for sale of equipment/fixtures/land any assets sold.



So to journalize it if its a gain on disposal,

Cash is debted
Accumulated Deprecition is debted
Gain on disposal is credited
Credit to equipment/fixutres
(To record sale of assets at a gain)

You'll also need to update your accumulated deprecition to the date of sale.

That includes:
Debt to depreciation
Credit to Accumulated Deprecition
(to record depreciation of assets to date of sale)

for loss on sale of asseets.
Rather than crediting gain on disposla you would debt loss on disposals.

On another note, you really shouldn't be filing taxes on this portion of your company that you sold, this should have been on last years tax filing as the the company was sold in 12/02 and not in the 2003 tax year. Unless of course you are not using the standard tax calandar year. I presume you are using the standard calander year for your tax year and not a ficial tax year. If in case you are using a ficial tax year and it includes 12/02 as part of this years filing tax period then it can be included.

Frankly to be honest, i would seriously consider spending the money on getting a certified CPA in your area to handle your taxes for you. This way you know it is getting done right and no mixups.

[Bill in SD, CA]

I have a CPA and I am beginning to think I know more than he does.

I thought it should have been taken care of last year but he said no.

Bill

[NeoStarO1]

Hmmm if he didn't take care of it last year that is not a very good accountant IMO of course. If you have doubts like that its usually best to go with your insticts and find someone else because he should have taken care of it last year. that is not very professional of him to leave open accounts (journal) like that.