Asset Purchase agreement

[mjmcclain2008]

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?

[Mike9241]

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.