I have a client who incorporated a business that they purchased several years ago. Their original purchase of the business included limited equipment, a vehicle and real estate as well as goodwill. They incorporated in 2008. The real estate is to be leased to the corporation. The vehicle (which is ancient and worthless) as well as the equipment (same state) is used by the corporation.
I'm wondering what to do with the purchased goodwill? Does it get transferred to the corporation? Does it need to be revalued (and how the heck would one do that??) Since the goodwill is associated with the "business" itself should I roll this into the corporation under Sec 351. The rest of the assets are still owned personally and are formerly leased to the corporation, and will be claimed on Schedule E.
I'm wondering what to do with the purchased goodwill? Does it get transferred to the corporation? Does it need to be revalued (and how the heck would one do that??) Since the goodwill is associated with the "business" itself should I roll this into the corporation under Sec 351. The rest of the assets are still owned personally and are formerly leased to the corporation, and will be claimed on Schedule E.
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