I sold my online business on installments. How do I handle the fact that the deal included goodwill, equipment, and inventory together?
I am from the Netherlands and sold a U.S.-based online retail brand for about $420,000. The buyer paid $90,000 at closing and the rest goes over four years. The contract bundles together the website, customer list, brand, some office equipment, and inventory on hand. My accountant says I cannot just put the full gain on Form 6252 and divide it by the payment schedule.
That is the part I need help with. I understand the cash is coming in installments, but I want to know how the asset allocation changes what actually qualifies for installment-method treatment.
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