Discussion:Amoritized goodwill
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Accounting Questions --> Amoritized goodwill
| 5 April 2007 | |
| I have recently been working with a bookkeeper for an s corporation business that has been in the process of preparing and converting the s corporate taxes onto the turbo tax program. In the past this company always filed taxes with the same cpa, but decided not to use that company this year. In 2005 the corporation sold an entity and recorded 20K in goodwill that began to amortize over 15 yrs. I have attempted to input this information into the turbo tax program under the asset section, however I am having some problems since the asset (intagible goodwill) was sold in 2005. I know that it still needs to be depreciated and amortized over the next 14 years, but I'm a little confused upon where it will be listed within this program. Does anyone have any advice? | |
| April 5, 2007 | |
| I don't know if you'll find many people who can answer your question on this forum. Most preparers use ProSeries or Lacerte.
As far as the amortization goes, are you saying the asset that generated the goodwill was bought and sold in 2005? If so, why would you think you need to amortize it over the next 14 years? Maybe I misunderstood your question. | |
| 9 April 2007 | |
| Natalie, thanks you for replying. The asset was purchased over 7 years ago, however it was sold in 2005. I was under the impression that the goodwill portion of this asset needed to be amortized and depreciated until it was depleted. Is this perspective incorrect? Thanks again for your input. | |
| April 10, 2007 | |
| Generally, when a company no longer has an asset, no value is reported on the balance sheet, i.e., the asset is written off. I would say the company has some kind of a loss when it disposes of the entity. To continue to amortize the goodwill would imply that there's some additional value there, when in fact there isn't. | |
To join in on this discussion, you must first
log in.
