Tax Implications of Client Buying An Acupuncture Practice

[clacourte1]

I have a new client that bought an acupuncture practice in 2022 consisting of just the book of business, no other assets. She paid 55k with a 10k down payment and is paying the rest in installments over two years with no interest. She had a sole-proprietorship acupuncture business prior to the purchase and she became an s corp mid-year. So, I'm wondering how to show this on her tax return--do we need to file form 8594? Is there any other forms that need to be filed or other tax considerations?

Any advice on this is appreciated. Thank you!

[TaxGuyBill · Accepted solution]

This question has me on pins-and-needles.   🤣

If the only thing bought is the client list, no, you don't need Form 8594.

I think the only thing you need to do with it is amortize the cost.

[IRonMaN]

It's times like this what we really could use that old thumbs down button --------------- pins-and-needles ☹️

[TaxGuyBill]

[clacourte1]

Ok, thank you! 😂