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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7197
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I am looking to sell my insurance business and possibly buy

Customer Question

I am looking to sell my insurance business and possibly buy another insurance business. Can I avoid the capital gains tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

The IRS has reversed it's position on the availability of the Section 1031 Exchange to Intangibles that may be valued separately & apart from Goodwill. Thus, since the assets of an Insurance Agency are largely intangible, it would be possible to structure a transaction that would qualify for deferring the gain on the sale. It would however require careful planning both in identifying and determining the value of the assets being sold as well as the assets being purchased. Apart from this issue, there are the general requirements for a 1031 exchange that require that they be strictly complied with if the transaction is to qualify for the deferral of gain on the transaction.

Expert:  Stephen G. replied 1 year ago.

Just checking you have any follow-up questions I can answer for you?