Where to enter sale of business with goodwill allocation in Proconnect?

Forum|Forum|5 years ago
July 15, 2020
1 reply
7 views

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.

ProConnect Tax Online

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George4Tacks

Level 15

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-property/00/3685 possibly with IRC 179 recapture.

Don't forget 8594 https://proconnect.intuit.com/community/banking/help/8594-generate-bulk-sale-asset-acquisition-statement/00/3330

Answers are easy. Questions are hard!

K

kanchan-textax-u

Level 3

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 .

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