Tax Implications When Selling of a Business

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following incorporation methods is NOT a pass-through taxation entity?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. When a sole proprietorship is sold for a profit, the individual owner may be liable to pay:

2. Which type of entity is permitted by law to assign a monetary value to intangible assets like goodwill?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Answer these questions on the tax implications during the sale of a business. Quiz topics include pass-through taxation entities and what taxes may be required for a sole proprietorship that's sold for a profit.

Quiz & Worksheet Goals

The following topics will be addressed:

  • Which entity assigns a monetary value to goodwill
  • Situations that result in increased scrutiny from the IRS
  • Risks associated with a sole proprietorship sale

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on tax implications when selling a business
  • Information recall - access the knowledge you've gained regarding pass-through taxation entities
  • Knowledge application - use your knowledge to answer questions about the selling of a sole proprietorship and a situation that might cause extra oversight from the IRS

Additional Learning

Consider the corresponding lesson named Tax Implications When Selling of a Business for more on the following:

  • Definition and types of pass-through entities
  • Example of an entrepreneurial individual
  • Scenario of a sole proprietorship
  • Tangible and intangible assets
Support