I'm using the Windows download Home and Biz version 2019. In 2019, I sold my business (sole proprietor). There is a check box on the business section profile that says "I sold (or disposed of) my business in 2019. I checked that box. However, no where throughout the entire TurboTax process (ie, I went all the way to where you file your taxes), did TT ask anything about the sale of the business (e.g., sales price, assets, etc). Also TT never completed the form 8594 which is required by the IRS.
I called TT and went through all of this with a tech. She then opened a ticket and sent me to a tech specialist. He told me he had never dealt with anyone selling a business and this was a rare occurrence. What?? In all of the 1000s of small businesses over the years no one has ever sold a business and used TT.
He stated that TT doesn't ask questions about the sale and doesn't produce a 8594. The form 8594 isn't even in the list of forms.
Has anyone had a similar situation? I researched the issue and it appears previous year's versions asked questions and built the appropriate forms.
@egldvrbags wrote:The following info does state the 8594 is not in TT, but it does state that TT will ask questions about the sale, which isn't the case with Home and Biz 2019...
Correct; the questions are actually limited to the sale of assets.
@egldvrbags wrote:I researched the issue and it appears previous year's versions asked questions and built the appropriate forms.
As far as I have been able to determine, Form 8594 has never been supported by TurboTax -- ever -- and that is most likely because it is only needed for asset acquisitions of a business that includes goodwill or other intangible assets.
If you have depreciable assets that are entered into TurboTax, you can essentially "sell" those assets in the program. However, the balance of assets included in the sale, such as small tools, supplies, et al, need to be entered into TurboTax as business property or capital assets (i.e. transactions entered on Form 4797 or 8949).
My business was mostly (95%) goodwill. So, form 8594 is applicable. I can fill that out separately, but since it's not in TT, I can't file electronically.
My main issue is that TT doesn't link the checkbox for the sale of a business to a routine that asks questions about the sale and then direct you to the appropriate schedule (D in my case) and/or appropriate forms. In my opinion it's a bug in their program. Why even have the checkbox to state that you sold the business? The only think I can figure is so TT won't ask you to input info for the business next year?? For a program that's for business, it should have the capability of handling the sale of a business.....or disposal, liquidation, exchange, etc. It should trigger all sorts of questions regarding the sale, such as depreciated assets, etc. All of that info is available to TT as it figured the depreciation for assets for my business throughout the years.
Very disappointed in the TT product and their support (lack of).
Here's links that lead you to believe TT can handle the sale of a business or at least did so in the past:
https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of
The following info does state the 8594 is not in TT, but it does state that TT will ask questions about the sale, which isn't the case with Home and Biz 2019:
@egldvrbags wrote:
Why even have the checkbox to state that you sold the business? The only think I can figure is so TT won't ask you to input info for the business next year??
I believe you are correct with respect to that assessment; the checkbox is not really functional other than for the purpose you mentioned.
From TT website:
https://turbotax.intuit.com/tax-tips/small-business-taxes/closing-a-business/L3pbEl8of
TurboTax will ask you if you disposed of your business during the year. If you closed your business just by stopping operations, there is nothing else to do for your income tax return. However, if you sold the business to someone else, TurboTax will guide you through the disposition process and include the transaction on your income tax return.
This is simply not true with TT Home and Biz. I called and talked with level 1 and level 2 tech support yesterday and both stated that TT does not do this.
@egldvrbags wrote:The following info does state the 8594 is not in TT, but it does state that TT will ask questions about the sale, which isn't the case with Home and Biz 2019...
Correct; the questions are actually limited to the sale of assets.
TT does ask about the sell of a business in Premiere. But I am having trouble with Section 179. I did not sell my business but TT keeps putting a number in the question and I cant find out where to delete that number??
Are you adding a Business Asset that qualifies for a 179 Deduction? Did you sell or stop using a Business Asset that you previously took a 179 Deduction on?
If you reported the Sale of Business Property, you may need to Recapture a previously taken 179 deduction.
If this applies, to get back to that section, click this link for info on How to Edit or Delete Sale of Business Property
Click this link for more info on What is a 179 Deduction?
Agree Hold Heartedly. A walk through for Sale of a Business is not an unusual request. The seller and buyer agree to the terms relating to real property/goodwill etc. so why can't we just plug in those numbers on the form 8594 and have TT calculate the tax ramifications. This one omission will force me to seek a CPA to do my taxes next year.
Sorry but the program is written for 95% of the population income tax program needs & will not ever cover everything or everybody. What you are asking for is not a simple thing to be programmed in a DIY format & based on all your posts on this public internet forum using a local tax pro or upgrading to one of the online Live options may be the best thing to do.