Should I use Schedule D to report sale of Insurance Book of Business?

Forum|Forum|6 years ago
December 7, 2019
3 replies
16 views

Client sold his Book of Business back to the company. First payment of $25000 was received in 2018. Should this be reported on Schedule D as sale of capitol asset?

ProSeries Basic

This topic has been closed for replies.

Best answer by TaxMonkey

Is he still working for the company? This is a nuance area. In general, the sale of a self created intangible, such as a client list is a capital gain, but many deals are more complicated than that:

If you are interest in learning more about the nuances I suggest starting here:

https://www.journalofaccountancy.com/issues/2011/jan/capitalgain.html

T

TaxMonkeyAnswer

Level 7

Is he still working for the company? This is a nuance area. In general, the sale of a self created intangible, such as a client list is a capital gain, but many deals are more complicated than that:

If you are interest in learning more about the nuances I suggest starting here:

https://www.journalofaccountancy.com/issues/2011/jan/capitalgain.html

dd4vols

Intuit Community Champion

yes... this would be a capital asset....but shouldn't you be using Form 6252 as an installment sale since you only rec'd partial payment during sale year?

If an answer solves your issue, click on the "Mark as Best Answer" button! Makes it easier for people to find answers to similar questions that have already been posted.

qbteachmt

Level 15

I closed the other two places you asked this same question. This is not Live Chat; you have to give your peer user Volunteers a chance to see a topic that they might consider themselves able to answer.

Don't yell at us; we're volunteers

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