Need facilitate beside amortization.?
we bought a business in 2000 and we amortized the goodwill . Now we sold the business .. are we supposed to recapture the amortiziaton when we are calculating the means gain?
Answers:
If you are selling the business, depending on what you are selling (stock in the business, or the assets & liabilities) your previous goodwill should enjoy nought to do next to this mart. You can't resell goodwill that you bought previously.
Goodwill is a Sec 197 intangible asset. Because you held it for more than one year, any gain up to the amount of the allowable amortization must be recapture as general income. The remaining gain (if any) is Section 1231 means gain.
The first intertwine below explains disposition of Sec 197 intangibles, and the second relation explains how to multiply Sec 1231 gain.
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Answers:
If you are selling the business, depending on what you are selling (stock in the business, or the assets & liabilities) your previous goodwill should enjoy nought to do next to this mart. You can't resell goodwill that you bought previously.
Goodwill is a Sec 197 intangible asset. Because you held it for more than one year, any gain up to the amount of the allowable amortization must be recapture as general income. The remaining gain (if any) is Section 1231 means gain.
The first intertwine below explains disposition of Sec 197 intangibles, and the second relation explains how to multiply Sec 1231 gain.