Sale of the business' assets allocated to FF&E and goodwill - need installment sale. Do I enter each in the Disposition screen? Will it see the asset disposed?

Forum|Forum|6 years ago
December 7, 2019
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Lacerte Tax

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Best answer by George4Tacks

Group the assets being sold https://accountants-community.intuit.com/articles/1606456-entering-a-bulk-sale-of-assets-in-lacerte and put a description in for the group, IN THE DEPRECIATION screen. You may have more than one group. Goodwill would be a separate sale in the Disposition Screen. Covenant would be another separate sale in the Disposition Screen.

Also be sure to file the 8594.

Add a comment, if you need more help.

George4TacksAnswer

Level 15

Group the assets being sold https://accountants-community.intuit.com/articles/1606456-entering-a-bulk-sale-of-assets-in-lacerte and put a description in for the group, IN THE DEPRECIATION screen. You may have more than one group. Goodwill would be a separate sale in the Disposition Screen. Covenant would be another separate sale in the Disposition Screen.

Also be sure to file the 8594.

Add a comment, if you need more help.

Answers are easy. Questions are hard!

L

Les B

Level 2

Thanks, your response gave me food for thought. The issue I have is a number of assets have 179 in an installment sale, so they are recaptured immediately. Some of the other assets being sold had a $ -0- market value in the 1060 allocation and some don't and my best guess is that the bulk sale option would allocate across the board based on NBV of asset being sold--how does it work?

sjrcpa

Level 15

my best guess is that the bulk sale option would allocate across the board based on NBV of asset being sold--how does it work?

Not like that.

You group like assets for a bulk sale,. You enter a sale price for that group. So if you have 10 pieces of equipment sold, you do a bulk sale for them with sale price of $XXX.

Goodwill is a separate sale with sale price $YYY.

etc.

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

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