sjrcpa
Level 15

Noncompete and consulting are ordinary income. You pick this up each year as she receives it.

Goodwill, client base are capital assets. As you indicate, zero basis.

What is the purchase price for equipment and supplies? To the extent previously expensed, this is ordinary income, too. If the equipment was fully depreciated, gain to the extent of depreciation is also ordinary Section 1245 income.


The more I know the more I don’t know.