Discussion:Default by Asset Purchaser
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Discussion Forum Index --> Advanced Tax Questions --> Default by Asset Purchaser
Discussion Forum Index --> Tax Questions --> Default by Asset Purchaser
Scottm1978 (talk|edits) said: | 13 May 2008 |
| A small retail store, a C corp with 1 shareholder, sold all assets and inventory and was paid cash of $75,000 in 2006. Purchaser was also paying $50,000 per year to the 1 shareholder over 3 years for non-compete, but in the third year asked if he could walk away from the business and give the assets and inventory back to original owner (back to the still open C corporation)in lieu of paying the final $50,000 owed on the non-compete agreement. How is this transaction acounted for owner and the C corp? | |
| 14 May 2008 | |
| Sounds like a loss for the purchaser and a gain for the seller. | |
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