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When is income realized on an "asset purchase sale" (not installment sale)? This is the sale of a financial planning practice. 80% goodwill/20% consulting.

Bamabob23
Level 1
 
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4 Replies 4
sjrcpa
Level 15

On the closing date of the transaction.

IRonMaN
Level 15

My curiosity is kicking in again.  Besides the closing date, what other possible dates are there?


Ukraine - hang in there
abctax55
Level 15

I'm curious what an "asset purchase sale" actually is?

And generally income is realized AND recognized when the cash changes hands.


#StandWithUkraine
raycpa99
Level 1

It means the buyer bought the assets from the partnership rather than buying the partnership interest from the partner. Its an asset sale rather than a sale of partnership interest.

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