Question
SALE OF INTANGIBLE
My client sold business assets within S corporation to an unrelated party. Assets included equipment, goodwill, covenant not to compete and trade marks. I did some research and am confused whether gain on sale of intangible assets such as goodwill, covenant not to compete and trade mark are capital gain on S corporation tax return or ordinary income. I read article that personal goodwill is capital gain. But this is enterprise goodwill. Thanks for advice.
