[twl]

Hi everyone,

I'm in the process of selling my small sole proprietorship.

All assets will be intangible. Mainly they want my company name, website/domain, artwork, and customer list.

What I'm trying to determine is tax implications. I've done quite a bit of Googling, but can't find a definitive answer on how I should report this sale.

I have no liabilities or outstanding loans/liens. Everything has been accounted for via the cash accrual method.

Does anywhere here have experience selling a sole proprietorship? I'd love direct assistance and/or a tax adviser referral. The internet leads me to believe that I need to be very careful on how I classify these intangible assets, and that I need to ensure I sell the company correctly to lower my tax burden.

Any assistance would be appreciated.

Thanks!

 

[headfirst]

Hi everyone,

I'm in the process of selling my small sole proprietorship.

All assets will be intangible. Mainly they want my company name, website/domain, artwork, and customer list.

What I'm trying to determine is tax implications. I've done quite a bit of Googling, but can't find a definitive answer on how I should report this sale.

I have no liabilities or outstanding loans/liens. Everything has been accounted for via the cash accrual method.

Does anywhere here have experience selling a sole proprietorship? I'd love direct assistance and/or a tax adviser referral. The internet leads me to believe that I need to be very careful on how I classify these intangible assets, and that I need to ensure I sell the company correctly to lower my tax burden.

Any assistance would be appreciated.

Thanks!

Talk to a business broker. This is what they do.

Where is the business located? What are the intangibles? Are you selling the website and phone/fax numbers with it?

 

[twl]

Talk to a business broker. This is what they do.

Where is the business located? What are the intangibles? Are you selling the website and phone/fax numbers with it?

Hi.

I don't believe I need a broker, I already have a handful of prospective buyers.

At this point all I'm looking for is tax consultant, as I want to minimize my tax burden if possible.

The intangibles as noted are the company name, website/domain, artwork, and customer list. We don't have a dedicated phone and/or fax number. There are no tangible assets, no inventory, machinery, or supplies.

 

[binki]

Talk to a CPA that does taxes

 

[fdsales]

You will need to work w/ a CPA, as pretty much whatever money you get from the sale will be treated as ordinary taxable income, unless you have business deductions that can offset some or all of the income. The tax law is very complicated, and you won't find any concrete, reliable answers on the internet, because every individual's tax situation is different, so use a good CPA that has business tax experience.
Understand you are responsible for paying your taxes, but a good, experienced CPA can navigate the tax system, and minimize your tax liability.

 

[twl]

Thanks everyone, I appreciate the input!