Customer list

[Unregistered]

Client bought Insu agency (asset purchased) in Aug 2005.

Startup expense - 2500
No need to amortise
Need election to expense

Paid $125,000
$2000 equipment - sec 179
$ 123,000 for customers - Treat as goodwill and amortize

Does it sound right?

Thanks

[dsi]

Sounds right to me!

[Bird Legs]

Customers List

Is the seller treating it the same way? Same dollar amounts?
The form detailing the sale is supposed to be attached to bhe tax returns of the seller & buyer.

[Unregistered]

Is the seller treating it the same way? Same dollar amounts?
The form detailing the sale is supposed to be attached to bhe tax returns of the seller & buyer.

Thanks

Do have exhibit "A"

There is no form though!

[Bird Legs]

Selling/Buying Business

Form 8594 - Asset Acquisition Statement Under Section 1060.
Also, it was not mentioned, but I will ask anyway. Was there a NonCompete
Agreement?
If so, there may have to be an allocation to that.

[Unregistered]

Form 8594 - Asset Acquisition Statement Under Section 1060.
Also, it was not mentioned, but I will ask anyway. Was there a NonCompete
Agreement?
If so, there may have to be an allocation to that.

There was no noncompete agreement to my knowledge but I iwll check it out. What kind of allocation? Are you talking about 6 or 7 different allocations required under section 1060?

Thanks

[JON]

Covenent in Purchase

A covenent as part of a purchase of a business is 15 years anyway....

[Unregistered]

Form 8594 - Asset Acquisition Statement Under Section 1060.
Also, it was not mentioned, but I will ask anyway. Was there a NonCompete
Agreement?
If so, there may have to be an allocation to that.

I am completing 8594

Class I = Cash Paid - $3500
Class II =
Class V = Goodwill - 120000
Class VI = Equipment - 5000

Total 128500

I will put same amount in both column, under Part II Assets

Does it sound right?

Thanks