Discussion:Goodwill disposition

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Revision as of 16:10, 31 August 2006

Discussion Forum Index --> Tax Questions --> Goodwill disposition

MSTguy (talk|edits) said:

31 August 2006
Okay - I'm already not comfortable with the following scenario, but humor me and assume there's no problems.

C Corp is dissolving and has $11,000 of unamortized goodwill remaining. Two shareholders will part ways and continue separate businesses as sole proprietors. Assume that half of the remaining goodwill is now worthless.

First, can this worthless portion be written off? (there are no other 197 intangibles)

Second, if so, will the event causing worthlessness constitute a sale or exchange for purposes of Sec. 1231 so that the loss will be ordinary?

Shareholders want to each take half of remaining goodwill for their Sch. C's. I don't know, I feel like I'm missing something. Research is proving fruitless.

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