07-13-2004, 11:26 PM
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 Re: selling an LLC & the capital vs. ordinary question "Laurence Tureaud" <pitythefool[at]gmail.com> wrote: - quote - > I'm leaning towards setting up a single member LLC as the
The same as any other entity.> structure of my software company. > One question looms big in my mind though. > How will being an LLC affect the tax classification (capital > vs. ordinary) of its sect 197 intangibles/goodwill assets > sold during a buyout? - quote - > Is there some way that I should hold the intangible assets
Why would an intangible asset held from the beginning NOT be> to keep them safe from a 35% tax rate when they are sold? > 15% seems way better than 35%  15%? The IRS has ruled that they can be capital assets. - quote - > Since the company doesn't have any real fixed assets
--> (besides my crummy computer), it would seem most its worth > is in section 197 intangibles & goodwill. All these assets > have been created already (what I've been doing for the past > 5 years.) David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
07-09-2004, 05:58 PM
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| selling an LLC & the capital vs. ordinary question I'm leaning towards setting up a single member LLC as the structure of my software company. One question looms big in my mind though. How will being an LLC affect the tax classification (capital vs. ordinary) of its sect 197 intangibles/goodwill assets sold during a buyout? Is there some way that I should hold the intangible assets to keep them safe from a 35% tax rate when they are sold? 15% seems way better than 35% Since the company doesn't have any real fixed assets (besides my crummy computer), it would seem most its worth is in section 197 intangibles & goodwill. All these assets have been created already (what I've been doing for the past 5 years.) Thank you! Larry << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| capital, llc, ordinary, question, selling |
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