For the portion of the sale assigned to assets, you need to allocate the sale price to each asset based on a reasonable method, such as cost or fair market value of the assets. Then, you edit each asset in the business section of your program and report the sale of each asset, listing the assigned sale amount.
For the portion of the sale that represents goodwill, you enter that on the screen that says Let's gather your business info. Find the Less Common Business Situations menu and choose Sale of Business Property. You will typically see this screen after you are done entering your business income and expenses for the year. Choose the option that says Sales of business or rental property that you haven't already reported on the screen that says Any Other Property Sales?
The result will be that the gain on furniture and equipment sale will be taxed as ordinary income to the extent of depreciation deducted, and the rest will be taxed as capital gain income, as will the goodwill component of the sale.
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