rblmom12
Level 2
‎08-23-2021 05:10 PM

Client sold business.  I know that Goodwill goes on Sched D as LT Cap Gain, but am told by a fellow tax professional (using other-than-ProSeries) that I should be able to find a check-box on Sched D in 1065 to indicate that this is not a portfolio sale.  ProSeries directed me to this Accountants Community site.  Anyone have answers on this?  (I've not been able to locate such a check-box in ProSeries.)

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PATAX
Level 15
‎08-23-2021 06:05 PM

I have had Goodwill sales several years ago not on  1065 but I believe on 1040, but I can never recall seeing what you're stating... Maybe it is changed or maybe I am wrong... maybe take a look at the K1 worksheet and something may be on there that you're looking for..

sjrcpa
Level 15
‎08-23-2021 07:23 PM

"indicate that this is not a portfolio sale"  The point of this is mainly to not subject it to Net Investment Income Tax. Is that a potential issue in this return? Might there be input to say not subject to NIIT?

Or is there an adjustment field for Form 8960 Line 5b? or maybe 5c. 

Or is there investment interest expense? 

 

EDIT: P.S. I don't use ProSeries but maybe these hints help you find what you're looking for.


The more I know the more I don’t know.

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Terry53029
Level 15
Level 15
‎08-24-2021 12:27 PM

If it were an asset only sale the goodwill is the amount received over and above the basis in assets, and would be reported on 4797. The gain would be carried to schedule D, and I believe would be subject to the NIT. Need more details to give you a better answer.   

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rblmom12
Level 2
‎08-24-2021 01:08 PM

8960 hints helped; ty.  Correct re; "...not subject it to Net Investment Income Tax."  (Yes, that's the issue in this return.)

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rblmom12
Level 2
‎08-24-2021 01:30 PM

Yes, it's an asset sale.

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Terry53029
Level 15
Level 15
‎08-24-2021 03:33 PM

Self Created Goodwill (never amortized) or Purchased Goodwill on Purchase of Business (Amortized)?

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