We have a single member S-Corp with a single main asset which is a website that has been operated for 12 years. We are currently looking to sell this website and I'm wondering how this will be taxed on the personal level.
When the site was originally created it was not profitable or something we were monetizing. It took four years to reach the stage where we started monetizing the business and then in year 4 formed the LLC to which we filed to be treated as an S-Corp in that first year of taxation.
Since then it's been a fairly typical structure: we paid myself a salary as the web developer for the site and then had pass-through income each year after expenses were reported by the business.
In the event that we find a buyer for the website how would this be taxed? Would you simply treat this as a long term capital gains transaction at the personal level? Furthermore, how is the cost basis for the asset determined.