It depends how you have been reporting this business. If you have not reported this business in TurboTax in prior years, report this as the sale of business property under the Investment topic. The total sales price and your total basis will determine the taxable gain or loss. You will need to allocate a portion of the sale and basis to goodwill and report that as a separate sale.
If you have been reporting this business on Schedule C, the sale is reported under the Business topic. If you have depreciated business assets (including goodwill), you will need to allocate the total sales proceeds among these assets. This is typically based on their adjusted tax basis, per the Depreciation Report. These sales are reported under Schedule C Assets for Depreciation from the Business summary screen.
To report that you sold your business, choose the Business tab in the TurboTax Home & Business header. Continue and click "I'll choose what I work on." Click Update beside Business Income & Expenses.
- Select "edit" beside the business you sold.
- Edit your Business Profile.
- Check the box for "I sold or disposed of this business..." Continue to the page titled "Let's gather your business info."
- Scroll down to Less Common Business Situations. Click Start beside "Sale of Business Property."
- Check the box for "Sales of business or rental property that you haven't already reported."
Note: If you're unsure whether or not you sold for a profit, answer "Yes." Enter the information, and TurboTax let you know.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
