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I am working on a return where there is the sale of a sole prop/schedule c business. Asset sales with goodwill on top of the assets. I believe I have the assets entered correctly directly on the asset worksheet (date of sale, sale price, expense of sale, etc.). But wondering how I enter the goodwill? Do I need to create a new asset with $0 cost? Or is that entered separately?
Thanks!
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Goodwill -- Intangible Asset Amortized over 15 years
Asset entry form - type of asset L
Enter IRC section under which you amortize the cost of intangibles - 197
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Sorry - should have been more clear. I am working on the return of the selling business owner. Not buying. Don't need to set up the Goodwill for amortization. I need to report the receipt of a business sale price for Goodwill.
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I believe you report it on schedule D as an investment
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I'm trying to get the amortization to reconcile to a prior accountant's tax return. Goodwill calculates by the month, but I can't figure out what method I should choose. Any advice?