Question

Asset Purchase agreement

Forum|Forum|2 years ago
April 1, 2024
1 reply
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My wife entered into an asset purchase agreement in 2023 where the purchase price was broken into two parts - goodwill and assets. The goodwill portion was the majority of the purchase price and should be taxed as a capital gain. How do I record the sale so that the goodwill will be reported as a capital gain?

do it through the investment income section sale of stocks

update/visit all

add a sale

type other

name - business goodwill (for Turbotax purposes)

type - other

how did you receive it - something else

description - business goodwill

when did you receive it (actually means when you acquired it ) use various

date sold from the date of the agreement

proceeds - same as form 8594/agreement

cost - 0

screen that asks if it was acquired more than 1 year ago - yes

should appear as LTCG on form 8949 type F - proceeds and cost not reported to IRS

this is for schedule c reporting if this was another type of business entity such as an S-Corp that's where it would be reported.