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Taxpayer sold business for $500K and assets have been fully Depr'd. Let's say $400K is goodwill and $100K is purchasing the assets.
How do I account for the $400K in the goodwill purchase on the taxes? There was no goodwill on the books. This was the original company that started the business.
Thanks in Advance!
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it's that simple?
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So, in ProSeries, I would put Goodwill in the asset entry worksheet and enter the sale under dispositions? If so, what would the date in service? The goodwill happened over many years. The business is 15 years old.
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If I put on Sch D it would be considered a Capital gain. On the other hand if I put it on the asset worksheet, it treats it as a Sections 1231 gain.
Will that make any difference on the partners personal returns?