Use Schedule D-1 to report the sale or exchange of business property when the California basis of the asset(s) is different from the federal basis. Need help selling or buying a business?Romano Law's team provides buyer due diligence, contract negotiation, seller preparation, closing assistance, more. The taxes on the sale of your business will depend on the transaction type and structure as well as the company's assets, price allocation, and balance sheet. In an asset sale, the new owner purchases the business's physical assets. The seller retains all rights to the legal entity. The sale of a trade or business for a lump sum is considered a sale of each individual asset rather than of a single asset. Explore tax strategies for selling your business. Bessemer Trust's expert guidance covers asset vs. An asset sale will generally be subject to California sales taxes.