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i own 2 insurance agencies and am considering selling one of them. I will mainain my tax id number and all bank accounts. I have owned this agency for 25 years. If I receive a flat buyout of $250,000 is that taxed as capital gains tax?

Submitted: 73 days and 7 hours ago.

Category: Tax

Value: $15

Status: CLOSED

Country/State/Province of question: arkansas

Already Tried:
just a consideration at this point. Wanted to know the tax ramifications before a decision is reached.

Accepted Answer

XXXXXXXXX,

I'm assuming this is an asset sale. An allocation of the $250K will need to be made against fixed assets (if any) and intangibles. Generally, you would have some depreciation recapture on fixed assets (taxed as ordinary income), everything else would be taxed as capital gains. Please let me know if you have further questions.

Regards,

Mark D

Accepts:
Expert:	Mark D
Pos. Feedback:	99.6 %
Answered:	9/11/2009

Enrolled Agent

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

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i own 2 insurance agencies and am considering selling one of them. I will mainain my tax id number and all bank accounts. I have owned this agency for 25 years. If I receive a flat buyout of $250,000 is that taxed as capital gains tax?

Optional Information

Country/State/Province of question: arkansas

Already Tried:
just a consideration at this point. Wanted to know the tax ramifications before a decision is reached.

Accepted Answer

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Question

i own 2 insurance agencies and am considering selling one of them. I will mainain my tax id number and all bank accounts. I have owned this agency for 25 years. If I receive a flat buyout of $250,000 is that taxed as capital gains tax?

Optional Information

Country/State/Province of question: arkansas Already Tried: just a consideration at this point. Wanted to know the tax ramifications before a decision is reached.

Accepted Answer

Related Tax Questions

Country/State/Province of question: arkansas

Already Tried:
just a consideration at this point. Wanted to know the tax ramifications before a decision is reached.