Level 8
Sole Proprietor selling equipment, inventory, goodwill, and Covenant not to compete, evaluated/agreed by buyer and seller for price per category. They agreed to make the goodwill worth almost 1/2 mil, equip 65K, a small amount for inventory, and 10K for CNC. I entered equipment individually on asset worksheets, inventory into Sch C income, goodwill on long term 4797, and CNC on short term 4797. Does this seem OK? Proseries charged a hefty investment tax on sales of Goodwill and the CNC.
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