MidStateVending Posted October 31, 2018 Share Posted October 31, 2018 Has anyone sold 1 or more accounts... and have experience on how that affected your taxes (such as Capital Gains and Income)? I have been made an offer on several of my accounts, but I don't know if the price is good enough to offset the (unknown) tax burden I can expect. It has been difficult getting an answer from the accountants I have tried... but they seem very busy. Any examples on how the machines were valued against goodwill (accounts), and how they were taxed? Example calculation.... 8 accounts (12 machines) for $12,000.... what are the taxes owed? Link to comment Share on other sites More sharing options...
brendio Posted October 31, 2018 Share Posted October 31, 2018 I don't know if you have given enough information, and I'm in a different jurisdiction, so what applies here won't help you. If you are serious, you need to wait until the accountant is not busy. But it all depends on whether you are happy with the price you have been offered and let that make your decision. It sounds to me like you are not, or it is borderline and you are looking for reasons not do it. If the deal stacks up, it should stack up regardless of tax implications. Link to comment Share on other sites More sharing options...
Southeast Treats Posted November 1, 2018 Share Posted November 1, 2018 Not an accountant, so just "thinking" out loud - your question seems to be would the profit be capital gains or ordinary income? I guess that depends on how you figure your basis. As I understand it, capital gains are returns on investments (i.e. your machines) that have been held for over 1 year. So if you figure the depreciated price (that you have already written off) of the machines vs the price you sell them for, excluding the cost/sale price of inventory, etc., that could be a capital gain. Would the amount earned be high enough that the tax savings vs just treating this as regular income exceeds the accounting cost? I doubt it is worth the worry, but only your accountant knows for sure.... Link to comment Share on other sites More sharing options...
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