Life Time Capital Gains Sales of Business 2023

[clemansu]

As of Dec 31, 2023 business sold.  Payments will be made over 3 year with monthly payments.  So for 2023 received $**k.  

How do I report and claim the sale of the business and the LTCG for 2023 as it is only 1/3 of the value.  

[TurboTaxSusan]

Are you using TurboTax CD/Download or TurboTax Online? Is this business incorporated?

[clemansu]

Using Turbo Tax Online.   It was a Corporation owned by 1 person.  

[TurboTaxSusan]

You can report the income from the sale as well access the Life Time Capital Gains page in the Capital gain/loss section in TurboTax Online.

Use the “Find” tool🔍 to search for “cap”. Select “Capital Gains and Capital Gains Deduction Profile” and then click the “Go” button.

[clemansu]

Sorry I was mixed up.  Using Turbo Desktop.

More information.  Corporation sold Dec 31 2022.  The value of the sales is the be paid to owner over 3 years.  So first payments started in 2023 with monthly payments.  Final payment to be made in 2025

On schedule 3 Do I record the full value of the sale or just the 2023 payment

Second :  No matter what amount I am entering on Schedule 3 line 1 the forms are taking 50% of that and calculating a capital gain on line 19900 of half the value.

I thought the lifetime Capital Gains exemption would eliminate the 505 and hence no tax payable on the sale.

Appreciate any help

[TurboTaxGinette]

As we cannot see your return, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to guide you to the correct entries. To contact them, please follow this link: Contact Us. When asked if you wish to receive an email say NO then say "speak to a representative" then hold the line.

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