My wife entered into an asset purchase agreement in 2023 where the purchase price was broken into two parts - goodwill and assets. The goodwill portion was the majority of the purchase price and should be taxed as a capital gain. How do I record the sale so that the goodwill will be reported as a capital gain?
do it through the investment income section sale of stocks
update/visit all
add a sale
type other
name - business goodwill (for Turbotax purposes)
type - other
how did you receive it - something else
description - business goodwill
when did you receive it (actually means when you acquired it ) use various
date sold from the date of the agreement
proceeds - same as form 8594/agreement
cost - 0
screen that asks if it was acquired more than 1 year ago - yes
should appear as LTCG on form 8949 type F - proceeds and cost not reported to IRS
this is for schedule c reporting if this was another type of business entity such as an S-Corp that's where it would be reported.