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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I am concerned that the sale of my agency does not qualify

Resolved Question:

I am concerned that the sale of my agency does not qualify under the installment rules. I am not incorporated, and if the IRS says this is an assets sale then will all of my capital gains Tax be due at once?
Submitted: 4 years ago.
Category: Tax
Expert:  RD replied 4 years ago.

RD :

Are you financing the sale? Is the sale price allocated to goodwill and other assets?


Yes I am financing the sale, assets are the customer list.

RD :

You can report the sales on installment basis and pay the tax(Capital gain tax) as you collect on the note

RD :

You do not have to pay the tax on the entire capital gains in the year of sale.

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