Self-created intangibles

[athaureaux6]

Hi online community, does somebody know how to differentiate in Proseries the Self-created Intangibles affected by the TCJA of 2018 that eliminated the gain as capital gain and started treating it as ordinary income. I am asking because I am playing with the software and in the Schedule C, Depreciation, Asset Entry Worksheet, I select code L intangibles and Section 197 in the IRC Code, it seems the gain always go to Ordinary Income. My question is how to differentiate the other intangibles that are not self created that were not affected by this law and the gain will be treated as capital gain. I have read about self created and it includes Patents, Inventions, designs, and secret formulas. I am referring to the rest of the intangibles and how to mark them in Proseries. Thank you and have a great day. 

[TaxGuyBill]

In the 'recapture' of the amortization is treated as ordinary income.  But if the sale price of the asset is greater than the unadjusted Basis, ProSeries treats that amount above the unadjusted Basis as capital gain.

So it seems to be working correctly for the items that DO qualify for the capital gain.

For items that DON'T qualify, ProSeries is not set up for that, and I think you need to tinker with it (for example, (1) change it to less than one year, or (2) don't use the Asset Entry Worksheet and enter it on the worksheet on the top of 4797).