Prepare the sale and disposal details
CDTFA asks how resale inventory, furniture, fixtures and equipment were disposed of. For a sale, keep the selling price, buyer details and the agreement or bill of sale available.
Retained inventory is a separate question. Tell the tax adviser what you keep for personal or other use rather than assuming all inventory left with the buyer.
Keep closeout separate from buyer protection
Closing the seller’s account is not the same as obtaining a tax and fee clearance for the buyer. Ask the escrow agent and tax adviser how each process is being handled.
The buyer may need its own seller’s permit. Do not describe the seller’s existing permit as an asset that transfers with the equipment.
Keep the mailing and record addresses current
Provide the address where business records will be kept and a current contact address. Keep copies of submitted information and outstanding reporting tasks.
Have your CPA review the treatment of equipment and other taxable items before finalizing the allocation. This page is an orientation to the paperwork, not a calculation of the tax due.