topic Sale of Intangible Asset in Investors & landlords

Sale of Intangible Asset

aturolski — Mon, 24 Feb 2025 15:49:56 GMT

I have an intangible asset (limited entry fishing permit) that I sold in 2024. It was not fully amortized prior to the sale. I believe the asset requires "special handling" since it is not a 1245 property (correct me if I am wrong). I initially selected "No" for special handling and got errors later down the road under the review process, which makes me think I should select "yes" for special handling. However, after I do so, I am only given this year's depreciation deduction amount and nowhere does it ask me how much I sold the asset for or where to enter the sale. So where do I enter the sale of this asset? Thanks in advance.

Re: Sale of Intangible Asset

DianeW777 — Mon, 24 Feb 2025 16:04:57 GMT

Yes, you should select special handling. The sale will actually take place using the steps below. If this was an amortizable asset, then it uses straight line depreciation/amortization. Add the amount for this year and add that number to the depreciation taken in all prior years for the total so that you have it ready for the sale entry.

Open your TurboTax Online/Mobile or TurboTax Desktop return
Select Income and expenses or Business Income > scroll to Other Business Situations
Select Sale of Business Property
Select Sales of business or rental property that you haven't already reported.
Answer 'Yes' to Do all of the following apply...?
Enter your sales information, do not make an entry for depreciation (no zeros)
1. Description of the Property
2. Sales Price/Sales Expenses
3. Date acquired and date sold
4. Cost
5. Depreciation

Re: Sale of Intangible Asset

aturolski — Tue, 25 Feb 2025 00:31:58 GMT

That worked. Thanks for the step by step instructions.