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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.

Level 1
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Level 15

On the closing date of the transaction.

Level 15

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

Ukraine - hang in there
Level 15

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

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

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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