Discussion:Sale of Business - Goodwill
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Discussion Forum Index --> Basic Tax Questions --> Sale of Business - Goodwill
Discussion Forum Index --> Tax Questions --> Sale of Business - Goodwill
| 12 October 2007 | |
| I have a client who sold her bookkeeping business (started from scratch) for $400,000. $375,000 has been allocated to "intangible assets" (i.e. client list, goodwill, etc., but not specifically identified in sale agreement). Is this amount subject to ordinary income tax rates or capital gain rates? | |
| 12 October 2007 | |
| JGC, you did not mention what business type of seller, if it's a C. Corp. (doubtful, but possible), there are better and worse ways to structure this. | |
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