Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My client is a financial adviser. He purchased a book of…

Customer Question
My client is a financial...
My client is a financial adviser. He purchased a book of business. The terms were the lesser of $500,000 or 33% of the billings over 6 years. He is on the accrual basis. How should he account for this purchase for tax purposes?It was recorded on the books as a $500,000 loan payable and about $401,000 of goodwill.His former CPA filed form 8894 with his 2015 business return showing goodwill (class VI and VII) of $401K, class V (fixed assets) of $74,000, and class III (accounts receivable) of $25,000. Another complication is that my client says he never purchased any furniture.Please answer and provide references to the code, regs, and/or court cases.
Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 31 minutes by:
3/8/2018
Tax Professional: PDtax, Certified Public Accountant (CPA) replied 1 month ago
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5,008
Experience: 35 years tax experience, including four years at a Big 4 firm.
Verified

Hi from Just Answer. I'm PDtax, and can assist. But your project suggests much more work than your deposit pays for.

I can assist. I'll make an offer presuming it is needed in the next few days.

Ask Your Own Tax Question
Customer reply replied 1 month ago
$500 is a little high. Can you do it for $250? The main thing I need to know is how the transaction should be recorded for tax purposes. Hopefully that narrows the scope. If you have dealt with this situation in the past it should be easy. it seems like a common situation to me.
Was this answer helpful?
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,008 satisfied customers
PDTax need assistance. On a 1041 there is a Decedent's
PDTax need assistance. On a 1041 there is a Decedent's Estate Created at time of death. First year of death 2016. A final 1040 return was filed for year of death 2016. There was a RVOC trust created i… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
Child and Dependent Tax Form 2441 Error: IRS Rejected return
Child and Dependent Tax Form 2441 Error: IRS Rejected return due to dependent's social security number being used on someone else's From 2441. Child is my dependent this tax year, I am Head of Househo… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
It is in regards to accounting... what is a transaction
it is in regards ***** ***** what is a transaction report? is for expenses that get reported each year to an accounting firm for tax reconciliation and filing business taxes... … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
828 satisfied customers
On line 17, Form 1120 ,C Corp Federal Tax return are state
On line 17, Form 1120 ,C Corp Federal Tax return are state corporate income taxes deductible.If I am doing my Federal C Corp returns for 2017 are the state corporate income taxes due but not paid yet … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
I am filing a final 1120S return. The only asset is an auto
I am filing a final 1120S return. The only asset is an auto with a depreciated basis equal to the fair market value, and this auto is being transferred to the shareholder who made the loan. A sharehol… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax Question: Doing amended returns, is it better to do form
Tax Question: Doing amended returns, is it better to do form 1045? How does that work? There's an NOL from 2017 that needs to be applied to 2015. What are the advantages and disadvantages.… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,008 satisfied customers
Tax question: What happens to a fixed asset for a business
Tax question: What happens to a fixed asset for a business that becomes a hobby? Is it carried over if there is no hobby income? Please provide IRS references.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax Question: Doing amended returns, is it better to do form
second opinion] Tax Question: Doing amended returns, is it better to do form 1045? How does that work? There's an NOL from 2017 that needs to be applied to 2015. What are the advantages and disadvanta… read more
Carter McBride
Carter McBride
LLM
966 satisfied customers
What forms are needed with my tax return. Turbo Tax printed
What forms are needed with my tax return. Turbo Tax printed about 50 sheets and I have not been able to figure out which sheets are needed besides the four tax return forms are necessary. I believe Sc… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,939 satisfied customers
What is the tax treatment for a real estate transaction made
Hi,What is the tax treatment for a real estate transaction made up of 2 contracts for raw land that is owned free and clear?One option to purchase agreement One lease agreement (84 monthly payments)Th… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
TRUST RETURN FORM 1041. THE ONLY ASSET (THE DECEDENT'S HOME)
I AM FILING TRUST RETURN FORM 1041. THE ONLY ASSET (THE DECEDENT'S HOME) WAS USED AS A RENTAL PROPERTY FOR 9 YEARS AND THERE IS CAPITAL GAIN. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How are UTMA assets taxed by the IRS after the age of
How are UTMA assets taxed by the IRS after the age of transfer … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My tax return requires a form 8824 due to a 1031 exchange
My tax return requires a form 8824 due to a 1031 exchange but it is a multiple property exchange so I need to attach a detailed list of the transactions according to form 8824's instructions. I live i… read more
PDtax
PDtax
Certified Public Accountant (CPA)
5,008 satisfied customers
This is in regards to a partnership tax return Form 1065 and
This is in regards ***** ***** partnership tax return Form 1065 and potentially amending it. The only reason for the amendment would be the distribution information on the K-1s was incorrect. Nothing … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have investments with Vanguard. Are transactions taxable
I have investments with Vanguard. Are transactions taxable when I switch from one of Vanguard's funds to another in order to reduce market risk?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
TAX PROFESSIONAL ONLY ONLY…NO ONE ELSE Gift Tax Return Form
EMC011075 TAX PROFESSIONAL ONLY ONLY…NO ONE ELSE Gift Tax Return Form 709 when not a CHECK I'm under the assumption when reporting gifts from Parent to Child; make sure the Market Value is Correct and… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Form 8300. We are doing a business to business transaction.
We are doing a business to business transaction. The form is not clear on how to compete. Do we complete Part I f … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x