we were owner/operator -truckers for 20 years-we just retired and sold our truck and trailer-I do our income taxes but this is new-is it just form 4797 for selling the equipment and also do I just write final on the tax form to let them no we are no longer in business?
Dear Sunshine: Fill out the 4797, I do not believe there is any where to indicate it is the final. The IRS will know it was the last one if they receive no more. Your Sch C is reporting income from the business and if you have no longer self employed income do not file anymore forms(Sch C). The IRS likes to get as little paperwork as possible.
Remember the 4797 will recapture any depreciation you have claimed and you may want to get some help on that.
Now that you are retired you will simply fill out a 1040 or similar form to report any retirement income that is taxable. IRS Pub 17 is good reading as well as www.irs.gov
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
yes any business property you sold would be reported on a 4797
and if you had any income and expenses at all during the year you would file your Sch C (and possibly SE)
I believe there is a small box on the C showing this is the final one
but it doesn't matter, when you file for 2010 you simply won't have a C