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Category: Tax
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is sale of goodwill subject to capital gain rates or ordinary

Customer Question

is sale of goodwill subject to capital gain rates or ordinary income rates
Submitted: 5 years ago.
Category: Tax
Expert:  CGCPA replied 5 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.


Goodwill is taxed at ordinary income tax rates. The capital gains rates do not apply to it.

Customer: replied 5 years ago.
please refer to section of irs code for reference
Expert:  CGCPA replied 5 years ago.
For this you can refer to IRS Publication 544 (specifically the section on intangible assets). This is available at The Publication has a rather lengthy discussion on this.

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