I sold the assets of my S-Corp last year to 2 different buyers . The Goodwill component of the 1st sale was for $250K on 7/18 and is being paid in 4 annual installments; the Goodwill component of the 2nd sale was $52,500 on 9/15 and is being paid in 3 annual installments. I have unamortized Goodwill on my Balance Sheet. When I enter the information about the 1st sale into Turbotax, it is easily linked to the Goodwill on my Balance Sheet and a Form 6252 is generated. My question is in regards to the second sale. Is there a way for me to link it to the same Goodwill intangible asset I have on my Balance Sheet, or do I have to create a new Goodwill asset and realize a 100% capital gain on each installment.
Thanks in advance for your insight.
was the goodwill you paid for anything specific like a customer list and a similar question on the two sales. is the goodwill for something specific? I understand the issue and I don't think there's any way in Turbotax to allocate the old goodwill between the two sales unless it was for something specific. then if one sale includes that item that's what you would link it too. if its generic goodwill then I would allocate the old goodwill based on the relative principal amounts your receiving say $40K for one and $90K for the other then allocate the old 40/130 and 90/130. to do this you would have to modify the old asset and split it into two assets. since I can't see any of the documents involved this is a general suggestion which may or may not be right in your situation. you may want the services of a tax pro in your situation.
The Goodwill in question on the Balance Sheet is just generic Goodwill; i.e. I bought the assets of a company in 2016, and the part of the purchase price that wasn't allocated to equipment or fixtures was allocated to Goodwill which I have been amortizing. Your suggestion of splitting the Goodwill up seems like sound accounting, but maybe a little complex. I think you are right about contacting a tax professional. Wish there was a way to contact someone just to ask some specific tax questions and not have them do my taxes.
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