NASSAUSUFFOLK

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  • 1.  TAX TREATMENT OF THE SALE OF A CUSTOMER LIST

    Posted 11-16-2020 01:43 PM
    Did the TJCA take away the ability to treat the sale of a customer list as a capital gain?

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    Jonathan Ehrlich
    EHRLICH & COMPANY, CPAs LLP
    Jericho NY
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  • 2.  RE: TAX TREATMENT OF THE SALE OF A CUSTOMER LIST

    Posted 11-17-2020 09:02 AM
    Depends on whether the customer list would fall under Section 1221(a)(3).  The last sentence of Regs. 1.1221-1(c)(2) suggests a customer list probably doesn't meet the definition, so it would still be a capital asset.

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    Matthew E. Rappaport, Esq., LL.M.
    Vice Managing Partner
    Chair, Taxation Group
    Falcon, Rappaport & Berkman PLLC
    (516) 558-3377
    mer@frblaw.com
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