Here is my situation. I purchased a 20% share of an LLC. Some portion of that purchase was allocated to tangible goods and the remainder was allocated to goodwill. The portion that was considered goodwill was $127,845.
My understanding is that this goodwill can be depreciated over 15 years, which amounts to $8,523 per year. This amount appears on the K-1 that the LLC prepares for me every year in Box 13 code W in previous years and code ZZ in 2023. The K-1 calls this "743(B) Amortization".
In TurboTax, when I enter Box 13 code W or code ZZ as shown in my K-1, I'm expecting to pay less federal taxes. I've edited my K-1 entry in TurboTax with and without Box 13 but TurboTax continues to show me the same amount of federal tax due.
Am I entering this correctly? How can I verify that this deduction is correctly applied to my taxes?
Thank you.
