Start Equipment inventory liquidating capital asset

Equipment inventory liquidating capital asset

This may happen voluntarily or involuntarily; the owner may simply decide to stop doing business, puts a "Closed" sign on the shop or a message to that effect on his or her answering service, and proceeds to sell everything; alternatively the owner finds him- or herself forced into liquidation to pay off a foreclosed loan or, alternatively, assets are insufficient to cover debt and Chapter 7 bankruptcy liquidation is necessary.

Inventory the assets your business owns and wishes to liquidate.

Your list should include a detailed description of each item, photograph, purchase information, condition, warranty certificates and repair records, if applicable.

Before liquidating assets it may be helpful to consult your lawyer and accountant or other tax professional for assistance in planning the liquidation.

Thus an owner selling his or her business for cash as a going concern is technically liquidating it—but in usual parlance the term is applied only to a situation where a business is closed and all of its assets are sold.

Idle or surplus assets can be either capital assets or non-capital surplus.

Redeploying an idle asset to another part of an organization is often the most productive use for the asset.

Use your industry contacts, including appropriate suppliers and competitors, to find buyers.