Your facts indicate that you purchased Goodwill and took amortization.
Section 197(f)(7) provides that for purposes of § 197, any amortizable § 197 intangible shall be treated as property which is of a character subject to the allowance for depreciation provided in § 167 (depreciation provisions).
The recapture provisions under Section 1245(a)(3) defines the term “section 1245 property” as meaning any property that is or has been property of a character subject to the allowance for depreciation provided in § 167 and is, among other things, personal property. Pursuant to § 1.1245-3(a)(i) and (b), the term “personal property” includes intangible personal property.
Based on the above, TT is correctly reflecting your gain as ordinary.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
