[jesse1]

Hello,
I am completing the T2 for a corporation that sold it's business assets in 2011. A portion of the sale price received was for goodwill. I understand the tax implications of eligible capital property and that I must complete Schedule 10 and line 108 (gain on sale of eligible property)on Schedule 1. For accounting purposes, the goodwill is reported on the income statement. In completing Schedule 1, the net income (accounting purposes) which is carried forward from schedule 125 to the first line on Schedule 1 includes the goodwill. To convert accounting income to income for tax purposes, I need to deduct the goodwill which is currently included in net income. Does anyone know where to deduct this on Schedule 1? Thanks

[dunner]

I would put it on 700 ("Other Deductions") with an appropriate explanation such as "Goodwill included in income on financial statements"

[jesse1]

dunner, on 02 February 2012 - 10:00 AM, said:

I would put it on 700 ("Other Deductions") with an appropriate explanation such as "Goodwill included in income on financial statements"

Thanks. Works well!

[jesse1]

I thought about this but wondered if this category should be reserved for tangible capital assets(?). thanks