Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-29-2009, 04:55 PM
Junior Member
 
Join Date: Mar 2009
Posts: 1
Need to sell business in order to get capital gains treatment

I produced a theatrical production (live song and dance show) and the show is performed at one of the hotels in Las Vegas (for over 4 years). The hotel wants to buy the show.

We are an "S" Corp (only one partner at this time). They do not want to prohibit us from producing the show somewhere else, but just want to own the show as it is now running in their hotel.

What do I need to sell in order to get capital gains treatment. I'm aware of IRS pub.544 where it talks about selling "intangibles"; code section 1221 where it says if I produced it or responsible for any part of it, it is excluded from the definition of capital gains.

What would have to happen for the hotel to own (at least in essence) the show or the know how of how to run the show, the formula, etc. I will also be transferring the existing employees to them.

My CPA is more persuaded towards the sec code 1221. I am not.

Many Thanks,

TMP



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
way to create capital gains? texastaxpayer S-Corporation 1 04-04-2009 04:05 PM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM
S-corp capital gains flystevens S-Corporation 1 09-22-2008 10:34 PM
Capital Gains kmk21248 Capital Gains 2 05-01-2008 02:50 PM
Reinvested capital gains tlagugu Capital Gains 1 03-22-2008 11:17 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning