Sale of a S-Corp Goodwill

[klillie]

Sold Business

Purchase Price Allocation:

Equipment and Fixtures $65k

Leasehold Improvements 20K

Goodwill 165K

How would you enter that on the return for a S Corp?

Thank you!

[sjrcpa]

All go under dispositions.

Equip & LHI sale should flow to 4797, Goodwill to 8949 (some put it on 4797)

[abctax55]

Run the equip & LHI thru using Screen 16.

The goodwill (I'm assuming self created) will go thru Screen 23.

[George4Tacks · Accepted solution]

And don't forget to complete the 8594.