TaxGuyBill
Level 15

@Jen16 wrote:

how to classify the income he received that is associated to the client base and existing accounts. 


Sale of a client list/goodwill/ongoing concern is a capital gain.  So you create an Asset Entry Worksheet with $0 of Basis, and report the sale in the disposition area.

As George mentioned, be sure you fill out Form 8594 to show the allocation of the assets.

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