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  • 1.  PROCEEDS FROM SALE OF S CORPORATION

    Posted 03-06-2020 01:05 PM
    Sold an accounting practice, an s corporation and just received  a 1099-MISC. First of all is this the appropriate form to issue for proceeds from sale of accounting practice. Secondly are all the proceeds taxable income?  Will appreciate your professional opinion.

    Andrew Aklassou 



  • 2.  RE: PROCEEDS FROM SALE OF S CORPORATION

    Bronze Most Valuable Member
    Posted 03-07-2020 12:10 PM
    The taxation  of the sale depends on the agreement. Did you sell only s corp stock? Did the agreement contain a non compete provision? Did the agreement contain a purchase of receivables? Did the s corp have hot assets?
    Did the agreement contain an amount for fixed assets and or goodwill? All of these items have specific tax treatments.
    Good luck!
    Frank E Sands 




    Original Message


  • 3.  RE: PROCEEDS FROM SALE OF S CORPORATION

    Posted 03-07-2020 07:33 PM
    Thank you so much. However, is there any literature  that can throw more light to my situation. First part of my original post was the appropriate form for reporting  proceeds from sale of business, please I need an answer to that. Again thanks

    Andrew



    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.