taxation on name and goodwill

[Jimmy Buffett]

If I sell my wash with a specific charge for the name and goodwill they will both be taxed as a long term capital gain won't they?

 

[soapy]

From a buyers standpoint I would think they would want you to inflate the price of equipment and land to cover your goodwill. That way they can use it as a basis for a write off on their taxes and you could use it for capital gains.

 

[Earl Weiss]

Buyers and Seller's have opposing desires. Buyers want equip valued higher because thy can then depreciate it. This will result in a hiher vlaue for Seller resulting in possible "recapture of depreciation taxed at ordinary income rates." Seeller may want goodwill valued higher for long term depreciation rates but Buyer won't be able to depreciate it.

 

[Jimmy Buffett]

You can depreciate goodwill just over a longer period of time. 15 years. That recapture doesn't work for me. The name would be the same as goodwill I would think.