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business income
My wife and I own an LLC. We sold a portion of the business (domains, copyrights, inventory, equipment). Does it get reported as normal income or as capital gains? And it the latter where do you report it?
First, you and the buyer must allocate sales price to the different assets. See this web site from IRS and F8594 and instructions.
https://www.irs.gov/forms-pubs/about-form-8594
Second, of the items you mentioned, some will be ordinary income, and some may be capital gains. Here is a link to Publication 544, Sales and other dispositions of Assets.
https://www.irs.gov/publications/p544
It is possible that you may have to file Sch D; Form 4797, Form 8949.
The LLC, is that a disregarded entity? C Corporation? S corporation, partnership?
If not a disregarded entity, it is the entity that will report the sale...and if a partnership or S corporation, will flow-through to your F1040.
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