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Can personal service business goodwill that is treated as a long term capital gain be exempted from the 3.8% Net Investment Income Tax (NIIT)?

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Level 1

Client sold a business that provided personal services and part of the agreed purchase price with the buyer was $400,000 for goodwill.  I have seen opinions saying yes goodwill is exempt from NIIT for active trades and businesses and no, it is not exempt.  

Has this issue been resolved?  If is exempt from NIIT, how do show the exemption from NIIT on the personal tax return?

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Level 15

See if this recent discussion helps: https://accountants-community.intuit.com/questions/1783594-sale-of-goodwill-of-veterinarian-practice...

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Still an AllStar

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1 Reply 1
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Level 15

See if this recent discussion helps: https://accountants-community.intuit.com/questions/1783594-sale-of-goodwill-of-veterinarian-practice...

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Still an AllStar

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