I made a purchase of a kid's sports camp franchise and the purchase agreement shows the following:
Goodwill and intangible assets for Territory - $74,667
Franchise fee - $5,000
As a part of that purchase, we also inherited about $5,000 worth of sports equipment.
In Turbo Tax, I designated the $74,667 and the $5,000 as Class VII assets and section 197 intangibles. However, I'm now wondering if one or both of those costs are actually section 195 "start up costs" instead.
Anyone have any thoughts?
