Ray5
Level 1
07-15-2020
04:35 PM
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I have client that sold business in 2019. The sale price mainly broke into two categories, Furniture and Equipment (FE), and Goodwill. I tried to find where to enter the goodwill portion. I think the FE should be entered in the "Dispositions (Sch D, etc.) but could seem to find where to enter the goodwill part.
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George4Tacks
Level 15
07-15-2020
04:58 PM
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Goodwill is a capital asset and would be sold in dispositions.
F&E will be entered in dispositions, but should go to 4797. https://proconnect.intuit.com/community/form-8949/help/form-4797-input-for-sales-of-business-propert... possibly with IRC 179 recapture.
Don't forget 8594 https://proconnect.intuit.com/community/banking/help/8594-generate-bulk-sale-asset-acquisition-state...
Answers are easy. Questions are hard!
kanchan-textax-
Level 1
02-24-2022
11:52 PM
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Hi George,
I have sold my business, there are various class of Assets as below which has tax basis and FMV, I am unable to show the same in Proconnect as the same has to flow through Schdeule K. which is not happening, Kindly please help on this. I request.
| Account | Asset Class | Tax Rate |
| Cash | Class I | - |
| Accounts Receivable | Class III | 53.25% |
| Inventory | Class IV | 53.25% |
| Fixed Assets - Depreciation Recapture | Class V | 53.25% |
| Fixed Assets - Capital Gain | Class V | 37.10% |
| Prepaid and Other Assets | Class V | 53.25% |
| Section 179 Intangibles, Existing Contracts, WIP | Class VI | 53.25% |
| Residual (Goodwill) | Class VII | 37.10% |
| Total | ||
| Earn-out | Stock | 38.60% |
There is also earn out .
