Goodwill

Forum|Forum|4 years ago
February 4, 2022
10 replies
101 views

My business is a c-corp. We had an asset sale in 2021. There was goodwill paid to us, but most of it is in the form of a Note Receivable that will be due in full after the new owner's SBA loan is paid off (potentially 25 years).

So on my books I have:

Cash xxx

Note Receivable xxx

Deferred Gain on Goodwill xxx

Gain on Sale of Goodwill xxx

How can I show this via Turbo Tax Business?

And Yes, form 8594 is complete.

TurboTax Business Windows

Anonymous_

Level 15

Are you trying to enter figures on the balance sheet? Are you out of balance?

I will page @Rick19744

Khari64Author

Level 3

No, I'm trying to enter my numbers into Turbo Tax. Not sure where to put them

Rick19744

Level 13

A number of things going on and not sure of all the facts:

Is the C corp liquidating?
If "yes", then I am going to recommend you have a one on one with a tax professional; there will most likely be tax consequences you are not expecting.
If "no", then you have the following:
- You need to complete a form 6252 and file it with your return
- This form will compute the amount of gain to report each year
- If the Goodwill amount (purchase price) is adjusted, then you will file a revised form 6252
Entry for the installment sale
- Dr. Note Receivable
- Cr. Deferred Gain (liability account)
Entry for payment on installment note
- Dr. Cash
- Cr. Note Receivable
- Dr. Deferred Gain (liability account)
- Cr. Gain (once again, this amount should agree to what is reported on form 6252)
Unless you sold purchased Goodwill, your basis in this is zero, so all cash received will be gain