Sale of Business

[Bjorn]

How do you hanlde the sale of a business in a small S-corp?

Sale price is 60,000.00. Everything is fully depreciated.

The other side suggested this for a break down.

Shop Equip 16,500
Office Equip 1,000
Supplies 500
Inventory 5,500.00
Good Will 10,000.00
Non Compete 12,000.00
Consulting Agreement 12,000.00
Vehicle 2,500.00

Certainly the other side wants as little as possible at 15 year property. How can we set this up so he gets the most as cap gain?

Mahalo,

Bjorn

[Bird Legs]

Sale of Business

Question: You state that this is an S Corp. So what is being sold? the stock, by the stockholder, or the assets of the corp.?
If the stockholder is selling his stock, then he will have a capital gain or loss.

[Armando Beaujolais]

How do you hanlde the sale of a business in a small S-corp?

Sale price is 60,000.00. Everything is fully depreciated.

The other side suggested this for a break down.

Shop Equip 16,500
Office Equip 1,000
Supplies 500
Inventory 5,500.00
Good Will 10,000.00
Non Compete 12,000.00
Consulting Agreement 12,000.00
Vehicle 2,500.00

Certainly the other side wants as little as possible at 15 year property. How can we set this up so he gets the most as cap gain?

Mahalo,

Bjorn

With amounts allocated to specific assets, I'm assuming asset sale.

What about lowering the sale price to, say, $55,000, in exchange for making it a sale of stock instead of a sale of assets?