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

[taxman4775]

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?

[TaxMonkey · Accepted solution]

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]

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?

[qbteachmt]

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.