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Get your taxes done using TurboTax
Questions:
How do you get a land value of $100 on a franchise fee?
I note you have a cost of $10,00 under the depreciation basis column. That's not right at all.
Overall, it looks to me like you entered your franchise fee as a depreciable asset, and not as an amortized asset. Here's how to do it correctly.
- In the Business Assets section select the Add and Asset button. (go straight to the asset summary if presented that option)
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe it as something like "10-year franchise Fees". Then enter the amount, and the start date of the business.
- Select "purchased new", then "100% business use", enter the business start date (again), then continue.
- Code section is 197:Franchise Fees/Other, then continue.
- Useful Life in Years is the length of time the free covers (10 years I presume?), then continue.
- You can "show details" if you like. Then continue, and that does it