I have a LLC that operates preschools. I sold one of my preschools. I'm accounting for this as an 'asset sale'. When I entered 'goodwill' and 'covenant not to compete', Turbo Tax asked whether those are considered Section 1245 Property. I'm not sure whether Goodwill and 'Covenant' are Section 1245 or not
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Section 1245 Property is any new or used tangible or intangible personal property that has been or could have been subject to depreciation or amortization.
Goodwill and the covenant not to compete are Section 1245 property as they are intangible property subject to amortization.
Section 1245 Property is any new or used tangible or intangible personal property that has been or could have been subject to depreciation or amortization.
Goodwill and the covenant not to compete are Section 1245 property as they are intangible property subject to amortization.
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