TaxGuyBill
Level 15
06-11-2021
10:09 AM
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@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.