Good Will Impairment

[lkeener]

Where can I deduct Good Will Impairment on TurboTax Business? We have closed the business, and I need to write down the good will value.

[tagteam]

Did you previously enter this as a Section 197 intangible? How have you been treating the asset?

In TurboTax Business, generally, you would indicate that it was abandoned in the Business Property/Assets section (located under Dispose of Business Property).

[lkeener]

It was entered at the start of the business 10 years ago under Good Will as an asset. The intangible value of what I paid for the business over the value of the equipment assets. It was never depreciated or amortized.

[tagteam]

It is still not clear as to exactly how it was entered (i.e., where in the program). Can you select the asset and mark it as abandoned or otherwise disposed of?

[lkeener]

I cannot select it as an asset to be abandoned or otherwise disposed of. It does not show up anywhere in TurboTax. It was a balance sheet item in QuickBooks entered ten years ago as an adjusting entry during a business reorganization.

[Rick19744]

Your facts don't appear to be consistent:

• You indicate that it was recorded when you purchased the business
• In another response you indicate it was recorded when you had a reorganization
• These two items generally have different consequences.  This may be semantics, but it is important to understand.
• What type of business entity are we dealing with

[Critter]

What I am hearing is you reported an asset on your books but failed to enter it on any tax return as an asset so it was never amortized...correct ?