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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1250
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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I sold my dental practice, sole proprietorship, in May 2015.

Customer Question

I sold my dental practice, sole proprietorship, in May 2015. What forms do I need for reporting to the IRS besides 8594. Is there a cost basis to goodwill if I "bought" it back in 1983 when I redeemed my corporate stock in Arizona Dental Health for patient records and started my sole proprietorship?
Is the goodwill amount from the sell just pugged into schedule D and the other assets, equipment, supplies, non-compete agreement etc plugged into "other" income?
Submitted: 9 months ago.
Category: Tax
Expert:  Mark D replied 9 months ago.

Hello, besides the 8594, you will need to report the sale of assets on Form 4797 (separated by class and life). Your cost basis on intangibles would be whatever you paid for the intangibles, less any amortization allowed. Being that your purchased it in 1983, any intangibles would be fully amortized and have an adjusted basis of zero. The results from Form 4797 flow through to Schedule D and then Form 1040. Does this answer your question? Please rate if so.

Expert:  Mark D replied 9 months ago.

Did that clarify my answer? If so please rate as that is how I am paid.

Expert:  Mark D replied 9 months ago.

Hello, did that answer your question? Please rate if so.