Corporation asset sale and 8594

[Strongsilence-CPA]

My client is a blogger.  She sold her website and a YouTube channel. No other tangible assets will be sold.  This is an asset sale. These 'assets' do not have any tax basis (as all costs were expensed in the past.)  Does that mean that the sales price is entirely for goodwill?

I think goodwill is the best result for my client as it is taxed at capital gain rates.

The 8594.  As I understand it, there is an inherent 'tension' between buyer and seller as the buyer will want assets to expense immediately while the seller wants capital gain treatment from goodwill.  I have completed F8594 and sent it to my client along with instructions for the buyer (who is in Finland) to sign it.

[IRonMaN]

"As I understand it, there is an inherent 'tension' between buyer and seller as the buyer will want assets to expense immediately while the seller wants capital gain treatment from goodwill."

The buyer and seller have to agree on what was actually purchased so see what happens when the buyer has a chance to review the 8594.  If you get a blank form back with a note saying "oletko hullu", you know there are still some negotiations to be done.

[Strongsilence-CPA]

If the message is this, then my client will be very happy:

"Allekirjoitan mielelläni lomakkeen 8594, jossa luetellaan vain ne verosaamiset, jotka tarjoavat myyjälle suurimman verohyödyn. Ja ei, en ole hullu."

[IRonMaN]

That's the spirit! 👍