insurance agent

[SHUBEE89]

client just got his book of business bought out by another company he received $160,000 he was sent a 8594 (asset acquisition statement) for $ 160,000
do put this on long term capital gains

[BOB W]

If he bought his book from another agent in the past and has any unused amortization left, he can use it as a basis against the sale price. He may have other assets that he disposed of that has basis, can also be used against sale price. Recapture will be subject to ordinary income not capital gains. The excess over recapture will be
capital gains.