Hello all,
My wife works part-time as a fitness instructor. In 2014, she bought a franchise from a retiring instructor and last year she sold the franchise for the same price that she paid in 2014. The buyer paid just over half of the amount last year and is paying the rest over time as the business income allows. She reported what she paid, along with normal subcontracting payments on a 1099 as one amount.
So, question #1: I would expect that selling a franchise like this, with neither loss nor gain would not be a tax event. If that's the case, then the amount reported in the 1099 should be reduced to just the subcontracting payments. Is this true? If so, how do I report this in TurboTax? If not, do I just report the whole sum as income?
Question #2: While she owned the franchise, we deducted standard mileage for her car when she drove from her primary place of business (our home) to the center she rented to teach fitness classes and back. Now, she no longer rents the center and I don't think we can claim any mileage for her continued subcontracted teaching so I need to "remove the vehicle for personal use". But TurboTax claims it can't handle the necessary recapture calculations (even though I've used TurboTax for all these years). How do I proceed in this situation?
