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New Member
posted Feb 25, 2024 11:02:35 AM

I sold my sole proprietorship in 2023 for 42.5k (I started the business from scratch in 2018). The assets were 0. How do I report this in Turbotax?

I have entered all revenue/expenses up to the sold date. This business was not a small business corp - cannot find the right location to enter the necessary details.

0 3 1479
3 Replies
Moderator
Feb 25, 2024 12:45:04 PM

Any money that you were paid that wasn't for inventory or fixed assets would be considered goodwill. Goodwill itself is considered like a fixed asset, so to enter it, you would put it in the CCA section as Class 14.1.  For the opening balance of undepreciated capital cost enter the value of the goodwill of your business. For the proceeds of disposition enter the value of the sale of your goodwill.

New Member
Feb 25, 2024 6:55:17 PM

So in this case since I started the business from scratch the opening balance of undepreciated capital cost would be 0?

This appears that I would be taxed as business income versus as a capital gain. I am understanding this correctly?

 

Thank you!

Moderator
Feb 26, 2024 6:49:23 AM

We would suggest  that you contact the CRA at 1-800-959-5525. They will be able to assist you in what exactly you should be entering.


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