UPDATED FOR TAX YEAR 2019
To report the sale of a business you will need TurboTax Self-Employed (online) or TurboTax Premier (or above) (CD/Download).
The sale of a business is comprised of the sale of individual physical assets (if any) and the sale of intangible assets such as goodwill. You will need to tell TurboTax you've sold the business and then record the sale of any assets or goodwill.
To tell TurboTax you've sold the business:
- Click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.
- On the Your 2019 self-employed work summary screen, click on Edit next to your business.
- On the Here's your [business] info screen, in the General Info section, click on the Edit icon (pencil).
- On the Let's review your [business] info screen, click on Edit in General Info.
- Continue to the screen, Tell us about how long you've worked in [business]. Mark the box I stopped [business] in 2019 and click Continue.
To record the sale/disposition of goodwill and any other assets
- On the Here's your [business] info screen, scroll to the Assets section and click Edit.
- On the Business Asset Summary screen, click on Edit next to an assets you entered. Continue through the screens to indicate the item was sold, retired etc. and enter the date you sold your business.
- Follow this procedure with each of the assets, including Goodwill.
The loss from the sale of your business will flow to Schedule C and appear on line 3 of your Schedule 1. It will be included in line 7a of the 1040.
You may also wish to review TurboTax Tips on Closing a Business
[Edited | 3/20/2020 | 12:47 pm PDT]
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