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posted Jul 12, 2020 1:39:40 PM

How do I record a business sale with goodwill?

I sold my business (single owner LLC) for $60K including 45K allocated to goodwill while cost of inventory and leasehold improvement is $100K. Should I record business sale as $60K and Cost as $100K without depreciation expense (form 4797). Where would I show goodwill? and would this be a correct presentation?

 

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1 Replies
Level 15
Jul 12, 2020 1:50:09 PM

@Siberyachka wrote:

I sold my business (single owner LLC) for $60K

including 45K allocated to goodwill

while cost of inventory and leasehold improvement is $100K. 

 

Your numbers don't really add up right.  You may need to clarify that.

 

However, TurboTax does NOT have the required form when you are selling a business with Goodwill.  You may want to file an extension and go to a tax professional this year.