Buying a practice - Spidell

Buying a practice

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Message Board Buying a practice

  • This topic has 3 replies, 3 voices, and was last updated 1 week ago by Lynn Freer.
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    • #275655
      Anonymous
      Member

      Buying a practice with a sales price based on revenue received for a few years.  How should the purchase price be recorded?  Can it be recorded as buyout expense, deductible in the year of payment?  I have the Spidell’s Selling Your Practice publication but only for a seller’s perspective.  Thank you.

    • #275664
      William Dewberry
      Participant

      An intangible, section 197, amortized over 15 years.

    • #275724
      Anonymous

      Is there any issue if I work as a 1099 contractor for the retiring seller, and then take over the clients after a few years with no selling price?

    • #275758
      Lynn Freer
      Participant

      You may have a problem with AB 5 and would be an employee. Not sure if the seller would agree to give you the practice after paying you for doing returns. you could do an installment sale and spread the payments out over 3 or 5 years, making it easier to make the purchase

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