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When is income realized on an "asset purchase sale" (not installment sale)? This is the sale of a financial planning practice. 80% goodwill/20% consulting.

Level 1
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Level 15

On the closing date of the transaction.

Level 15

My curiosity is kicking in again.  Besides the closing date, what other possible dates are there?

Slava Ukraini!
Level 15

I'm curious what an "asset purchase sale" actually is?

And generally income is realized AND recognized when the cash changes hands.

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Level 1

It means the buyer bought the assets from the partnership rather than buying the partnership interest from the partner. Its an asset sale rather than a sale of partnership interest.

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