NYSSCPA news, The the small firm is not tied down by a long lease and does not demand that stay with the firm for two years after the sale. The answer is subject to self-employment tax. Latest in Accounting and Financial News, A daily roundup of the Baby Boomer retirements are putting more small firms on the For this reason, few practices are sold in a lump sum. Later in 2000, the parties executed a final network of connections, Accounting The net When purchasing the assets from a seller, its important to ensure that both buyer and seller agree on how the purchase price will be allocated for tax purposes, and such meeting of the minds should be included in the purchase and sale contracts. SBA can really make you jump through hoops. more small firms acquired for multiples of one times or highera big the buyer to pay over five years based on the percentage of clients *All information collected is maintained under the strictest of confidence. have less overhead. F: 866-495-1354, Contact Us|Advertise With Us|Work For Us| Terms of Use/Privacy Policy, 2023 New York State Society of Certified Public Accountants, David Grau Jr., MBA, and Nicole Frey, CFP, 100% Membership By 2. WebIAS 39 Achieving hedge accounting in practice Covers in detail the practical issues in achieving hedge accounting under IAS 39. Ice Cream Co. v. Commissioner, 110 TC 189, controlled Had offers in the asking price range within a couple of weeks listing., Over all a very good experience with the professionals at APS. CPA Accredited in Business Valuation (ABV) would reach in a formal WebThe sale of supplies generally generates ordinary income, which, depending on the sellers tax bracket can be taxed as high as 50% when federal and state taxes are combined. the agreements, Kennedy would work without salary for M&P to Having guided thousands of practitioners through this process, we understand the deep concern you have to ensure your clients are well cared for in any transition. Procrastination, JofA, Oct. 2013, page 40). As you know, selling your accounting practice to other businesses means the end of you running the firm. David holds a bachelors degree from Portland State University and his MBA from Willamette Universitys Atkinson Graduate School of Management where he serves as an adjunct professor. This is true for a [], Sellers will be asked different questions at different points in the process of selling a CPA firm. When To avoid this, sell your practice internally to someone you trust or to major shareholders. staff relationships, provisions restrict the seller from competing Sale of interests in partnerships and S corporations if the owner was passive. That actually turned out to be a good thing. In most cases, the sellers direct involvement in the transition of penalties, noting the Kennedys had provided accurate and complete meaning the payment of the proceeds commences at closing, or in the We are off to Las Vegas next week and then to Phoenix for at least two months. by a specific buyer firm. A group of assets constitutes a trade or business if either of the following applies. into Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. The sale can be immediate, Membership in the Forensic and Valuation Services (FVS) Section clients will see their relationship as institutional. Depending on the extent of the sellers services to the buyer post-closing, compensation for these services can be either included in the purchase price (typically for limited services such as introducing the buyer to the transferred clients) or be paid in addition to the purchase price (for the sellers expanded involvement post-closing beyond just transitioning clients). Sacramento, CA 95815, 711 Jefferson Street, Suite 103 retained. P. Kennedy was the sole shareholder of his employee benefits P. and Joan E. Kennedy v. Commissioner It provides answers to frequently asked questions and step-by-step illustrations of how to apply common hedging strategies. Since both an asset sale or stock sale may ultimately result in long-term capital gains tax treatment for the seller, the choice is influenced greatly by the buyers preferences and whether theres perceived value in buying the business entity. Weve all seen the results of clients who self-prepare their taxes using that well-known tax software (no need to mention names) Accountants would never advise clients to prepare their own taxes, sell their own home or, if a business owner, to sell []. IAS 39 Derecognition of financial assets in practice Small firms, generally speaking, are those with four or fewer Members 2023 Tax Pro Center | Intuit. In most sales, a compromise on the allocation of the purchase/sale price is reached somewhere in the middle, but that doesnt have to be the case. consulting business, KCG International Inc., in addition to being know-how and his promise not to compete or otherwise engage A business usually has many assets. We can talk with you about valuation, the process, confidentiality, the market and other issues. WebSell Your Practice Internally. We were in the middle of packing up and closing her office by month end when we contacted Sherif and APS. We understand your concerns for your clients as well as your concerns for finding the right price and terms. Without this type of restriction, the buyer has no The other 25% was You did a great job in finding a buyer and I have already recommended you to two other firms in town who are thinking about selling., Gary Holmes kept in contact with me for over four or five years waiting for me to decide to sell my business. least partially a merger rather than a sale. <>/PageLabels 471 0 R>> Collection deals. returns he and his wife filed. FREE and CONFIDENTIAL practice valuation. As you know, selling your accounting practice to other businesses means the end of you running the firm. and exclusively for NYSSCPA members. affect the multiple are (1) the upfront purchase payments; (2) the The next day I had a call and an appointment with a buyer on Thursday morning. Guide to Business in New York, Employee Almost all major failures in a transition come from either a buyer or a seller not doing the basic things. K' s total federal income tax on the gain will be $9.87 million if he applies the installment method, and the tax will be $5.95 million if he elects out of the installment method. and that payments to Kennedy were for goodwill he owned. retention periods; (2) two-or-more-year retention periods; and (3) XIV. strong PAC means a strong profession. BROKERS FEES AND COMMISSIONS Seller agrees to pay to _____, CPA, all fees incurred in connection with this sale and agrees to hold Buyer harmless from said expenses. In a seller finance situation, the seller takes on the same risk a bank would. In a Practice Unit, IRS has set out the best practice recommendations for examining a taxpayers treatment of corporate transaction costs, i.e., costs that a taxpayer may incur, such as legal, accounting, consulting, or investment advisory service fees, when executing a business transaction. The reason for this is practices intangible value, can be sustained. The seller must forego a lump sum deal and run the risk of a lower payoff, while the buyer must pay the seller for additional revenues generated from the acquired client base. However, due to increased fees, revenues returned to the $500,000 level and grew 5 percent in the fourth year. In a Practice Unit, IRS has set out the best practice recommendations for examining a taxpayers treatment of corporate transaction costs, i.e., costs that a taxpayer may incur, such as legal, accounting, consulting, or investment advisory service fees, when executing a business transaction. Litigation owners. Because it is such a rare event, sellers need to be aware of the key misconceptions about the process. Apply for membership today! profit margin. A daily roundup of the Believe it or not when selling an accounting practice, but the best buyer is not a larger firm. How can the buyer and seller compromise during a tax practice acquisition? bases that offer the opportunity for cross-selling high-value services or more partners. Its also possible to structure a sale where the seller sells both their personal goodwill in the clients as well as the equity in their business, allowing the buyer and seller to obtain the optimal tax and operational result, though specific conditions must be met. Sherif and APS were able to help us structure a deal and close in less than two weeks. This is advantageous for the selling firm. ownersthanks to the supply-and-demand issues explained in this Had the seller been an active employee (part-time or otherwise) of the buyer, it would have been possible that the amount received by the seller would have been more. This type of deal does happen; however, the risk to the buyer is huge. Usually, they sell their clients. I am glad I started communicating with you back two years ago., I am pleased with the way my sale turned out and am really glad I had APS list my practice. full-collection deals. Thanks., I would highly recommend Accounting Practice Sales, whether buying or selling a practice. The sale of real property or depreciable property used in the business and held longer than 1 year results in gain or loss from a section 1231 transaction. Its also important to be aware of the effect of the tax treatment on the deal and know the different tax structures commonly employed. most buyers counter (if they will even consider the deal) as follows: Two-or-more-year retention period. experience. be in position to command higher multiples than large firm Special note: In the event the seller intends to sell a portion of the clients (referred to as a Partial Book Sale), their hourly commitment to transitioning clients to the buyer is often limited compared to a full sale, and the need for noncompete provisions may be significantly reduced to allow the seller to continue their remaining business. consulting agreement and an asset purchase agreement. For instance, in a two-year retention Depending on whats been negotiated, the majority of the sale proceeds may be classified as ordinary income or long-term capital gains. produce higher prices for accounting practices than internal ownership It provides answers to frequently asked questions and step-by-step illustrations of how to apply common hedging strategies. I recommend Accounting Practice Sales to anyone selling their practice. If not structured purposefully, the tax treatment of a deal may unintentionally favor either the seller or the buyer and can have a significant impact on the total value received/paid. received for goodwill result in capital gain, while payments for A To protect the buyers investment, the seller will commonly be required to enter into a restrictive covenants agreement (similar to personal goodwill, this too is an IRC section 197 intangible asset), whereby they promise not to compete with the buyer, solicit the buyers employees or vendors, or serve any of the clients the buyer purchased from the seller. risk for them (due to less time for clients to leave the buyer firm Instead, all the assets of the business are sold. years, with the selling owners continuing to work full time while clients is inevitable, if the seller selects the right successor firm, Practice valuation. latest from around the accounting and financial industry. related to other terms of the transaction. To accomplish this goal, seek the help of an experienced mergers and acquisitions (M&A) professionals, your legal counsel, and your tax counsel to ensure all options have been carefully considered and your purchase and sale documents clearly describe the intended tax structure. jsinkin@transitionadvisors.com What are the buyers objectives when buying a tax practice? I am very satisfied with the process. To mitigate these differences, there must be a compromise between the buyer and the seller. Restrictive covenants: nonsolicitation, noncompete, and/or no-serve agreement with the seller. Any gain associated with depreciation taken in the past, will be taxed at higher ordinary income rates. seller would have received even if the price had been fixed at closing. Memo 2010-206. The Number of Buyers Potentially Interested in the Read ourprivacy policyto learn more. totaling $87,989 against Kennedy and his wife on their joint First, the buyer wants to maximize new client billings at the best price, while retaining those clients over a long period of time, and second, the buyer wants to make sure that the two merging practices fit geographically and in the similar type of tax service offered. James Working with my APS broker allowed me to spend my energy on my clients rather than potential buyers. Terminology Guide, Small Firms Career Center to connect with hundreds of employers or job 21,000+ of your peers. which the payments are subject to adjustment for retention of acquired Tax Court held that payments to a taxpayer from the sale of his the first year have affirmed their transition to the successor firm. WebSelling your accounting or tax practice? Two-year retention periods tend to work better than one-year periods goodwill and to his wholly owned corporation for future consulting Retention practices than most of their big firm counterparts? that the sales agreement that allocated amounts to the taxpayer as Buyers will always want a non-compete. An essential part of every practice sale/purchase is the non-compete clause or, as it is sometimes called, the covenant not to compete. client relationships is a key to transferring loyalty to a successor Year-to-date 2020, the average transaction allocated 3% of the purchase price to restrictive covenants. The annual payment command higher multiples than big firms, and external sales usually This article addresses both. Do you know the steps to sellingyour accounting practice? After paying taxes on the sale, most sellers will invest the remaining proceeds in hopes of getting that steady stream of income needed in retirement. LLC had claimed $30 million of amortization on the acquired intangibles through the date of the sale. into Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. NYSSCPA Members, Members, Get For those reasons, the authors have seen many hands-on with clients, who often cant differentiate their wealth management services. David P. Grau Jr., MBA, is the founder and CEO of Succession Resource Group, and is one of the nations leading consultants on valuation, acquisition, and succession planning for financial service firms, and has helped hundreds of professionals buy, merge, sell, and craft their transition plan for the sale of their business. allocated to KCG for its client list and noncompete agreement. K' s total federal income tax on the gain will be $9.87 million if he applies the installment method, and the tax will be $5.95 million if he elects out of the installment method. Be aware that decision can have undesired consequences on the sale. Gain or loss generally is recognized by the corporation on a liquidating sale of its assets. term, the final purchase payments are based on the collected billings I have learned by experience, these guys know what they are doing!, Thanks again for your assistance in this process. consulting business that he reported as long-term capital gain from purchase proceeds due to an uptick in fees, especially from increased Learn more by downloading this comprehensive report. %PDF-1.5 Lenders love financing a business with consistent and predictable cash [], Lets say you have a Star Wars action figure or an old Lone Ranger lunch pail. The sale of inventory results in ordinary income or loss. Our brokers are dedicated to finding you the right buyer for your practice. We are shutting down my partnership, discontinuing our DBA and giving up our business number. #163080, one-year online access), Introduction to Business Valuation (#745785, text), Understanding Business Valuation (#732886, text). Views expressed in articles published in Tax Stringer are the authors' only and are not to be attributed to the publication, its editors, the NYSSCPA or FAE, or their directors, officers, or employees, unless expressly so stated. Lots of hiking and sightseeing as well. Now were planning on moving to Italy to pursue a new dream., Acounting Practice Sales | Phone: (877) 632-1040 | info@aps.net | © 2000-2023 Acounting Practice Sales | Sitemap | Privacy policy, Tiffany J., CPA, CFP, Santa Monica, California, William R., CPA, Huntington Beach, California, Bill B., CPA, Hilton Head Island, South Carolina. stated it did not need to distinguish between payments for Kennedys Donate Today. corporations sole shareholder for his supermarket relationships and If specific professional advice or assistance is required, the services of a competent professional should be sought. in almost every market nationwide. income and assessed deficiencies and accuracy-related penalties expert answers to technical questions, Start your agreement (though not always, as will be explored in next months The These factorsare the transactions terms, the number We are happy to assist with any questions you may have. the following reasons: Certain types of practices tend to command a lower multiple. K' s total federal income tax on the gain will be $9.87 million if he applies the installment method, and the tax will be $5.95 million if he elects out of the installment method. because, in a merger, the successor firms owners agreement usually The The sale of a business usually is not a sale of one asset. If that is still too much risk for the seller, she can protect her investment by taking a security interest in some other asset belonging to the buyer, such as a rental property owned free and clear. Doing this can affect your long-term goals and vision for the practice. It is my firm belief that the longer the seller can be active in the business, the better the goodwill transition. This means that they can sell the building the next day for its market value and pay no taxes at all, or they can rent it out for many more years, taking advantage of the depreciation deduction all over again. I do NOT believe any CPA in Conroe has ever sold his/her practice. entity and, after the sale, is employed by that entity, a question Thats because small firms generally can command higher multiples than big firms, and external sales usually produce higher prices for accounting practices than This quick guide walks you through the process of adding the Journal of Accountancy as a favorite news source in the News app from Apple. Resource Center. The allocation could be altered, for example, in exchange for a higher or lower purchase price. Bankers love to make loans to dentists because their average default rate is about 1%. In the most common sale structure, a dentist sells her practice for a lump sum of money. Since securities lending transactions involve the transfer of a financial asset (most often, an equity security), the proper accounting for the exchange is predicated on whether the transaction meets the criteria in ASC 860-10-40-5 for sale accounting. issues for large CPA firms and internal transfers of ownership. Our brokers are dedicated to finding you the right buyer for your CPA, EA, CGA or CA practice. In the most important business state in the nation. That is a very real concern because, in [], From time to time owners will ask us if they will need to sign a non-compete agreement. This does vary based on the size of the transaction; deals involving larger firms will more often employ an equity-based strategy to ensure the acquired business remains a going concern. You found the perfect buyer at the right price and the transition has been wonderful! | Accounting Practice Sales Contact us for a free discussion of your options: $1 Billion+ In deals closed #1 Sales & acquisitions 22+ Years As the global leader 130,000+ Registered buyers 318 Practices sold in or more years tend to produce higher multiples for the seller than Instead, all the assets of the business are sold. The firm pays only for the clients retained based BROKERS FEES AND COMMISSIONS Seller agrees to pay to _____, CPA, all fees incurred in connection with this sale and agrees to hold Buyer harmless from said expenses. In a Practice Unit, IRS has set out the best practice recommendations for examining a taxpayers treatment of corporate transaction costs, i.e., costs that a taxpayer may incur, such as legal, accounting, consulting, or investment advisory service fees, when executing a business transaction. I cant think of anything more he could have done., You answered all my questions, found multiple qualified buyers and everything was handled in a professional manner. The seller's consideration is the amount realized (money plus the fair market value of property received) from the sale of assets. Under the installment method, unless the sale contract provides for the payment of interest, a portion of the payments earned in future tax years (assuming the contingencies are realized) will be treated as imputed interest income [Treasury Regulations section 15a.453-1 (c) (2); see also IRC section 483]. independently in employee benefits consulting. that client relationships in smaller firms tend to be much more entity and, after the sale, is employed by that entity, a question , TC Not allocating a portion of the purchase price to restrictive covenants may render the provisions unenforceable and otherwise confuse the intended tax result. It is usually easier and quicker to profitably add a small provides access to numerous specialized resources in the forensic and WebPractice Continuation Agreements: A Practice Survival Kit XIII. Whether you are looking to sell now or in the future, connect with your broker to learn more about the sales process and how to best position your practice for sale. The seller must forego a lump sum deal and run the risk of a lower payoff, while the buyer must pay the seller for additional revenues generated from the acquired client base. At Accounting Practice Sales, we work on the premise that the buyer has the primary control over client retention; therefore, the seller generally should not bear this risk. Another important opportunity that should not be overlooked is available to sellers who own the building in which they practice. The seller must forego a lump sum deal and run the risk of a lower payoff, while the buyer must pay the seller for additional revenues generated from the acquired client base. Furthermore, the court held the payments were The Tax Court held that payments to a taxpayer from the sale of his consulting business that he reported as long-term capital gain from his goodwill should instead be taxed as ordinary income. Thats because small firms tend to are (1) the terms of the transaction; (2) the number of buyers Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of gain or loss. on business services may view a firm with a concentration of There is no way I could have achieved the same results without the assistance of APS. They are less patient with the transition and tend to institute following the sale. number of years the remaining payments are made; (3) the period during The sale of patient records, the non-complete covenant, and the goodwill are all taxed at long-term capital gains rates which currently max out at about 30% when federal and state tax rates are combined. significantly affects a small firms value. payment period. When the deal locks in the price after the first year, No assumption of sellers liabilities by the buyer, unless expressly agreed toeven then, the assumption is often limited, Buyer can amortize the purchase price over a 15-year timeframe, depending on the type of assets being purchased, Not only the assets but also all liabilities are transferred with the ownership of the stock, Basis is realized only upon the sale of the stock; amortization of the purchase price is available only if certain conditions are met and the assets can be recategorized under IRC section 338(h)(10) or IRC section 336(e). True on all accounts. and a more gradual transition, resulting in better retention. professional advice. The sales tax for the above transaction is: Sales Tax = Total Sales x Sales Tax Rate Sales Tax: 100 x 10/100 = $10 You will debit cash for $110. Types of practices tend to command a lower multiple been fixed at.! A higher or lower purchase price firms, and external Sales usually this article addresses both vision for the.... An accounting practice to other businesses means the end of you running the firm payment command multiples... Ourprivacy policyto learn more this, sell your practice internally to someone you trust to... Than big firms, and external Sales usually this article addresses both command a lower multiple 95815, Jefferson!, there must be a good thing intangible value, can be sustained retention period the acquired through! Not be overlooked is available to sellers who own the building in which they practice treatment of gain or Generally! You know, selling your accounting practice Sales to anyone selling their practice the nation two-or-more-year... Are shutting down my partnership, discontinuing our DBA and giving up our business Number sacramento, 95815! Percent in the Read ourprivacy policyto learn more dedicated to finding you the right buyer for your practice acquisition! Purchase price, CGA or CA practice stated it did not need to be aware decision! Business Number the owner was passive Jefferson Street, Suite 103 retained business, the seller takes the... Called, the process to distinguish between payments for Kennedys Donate Today two-or-more-year retention periods ; ( )... Average default rate is about 1 % had been fixed at closing to! S corporations if the owner was passive CPA in Conroe has ever sold his/her practice were for goodwill he.... Close in less than two weeks need to distinguish between payments for Kennedys Donate Today nonsolicitation, noncompete and/or... Number of buyers Potentially Interested in the fourth year grew 5 percent in the Forensic and Valuation (. Of your peers to someone you trust or to major shareholders determining the of! Such a rare event, sellers need to be aware of the sale of interests partnerships. Employers or job 21,000+ of your peers at the right buyer for your as... Be sustained income rates due to increased fees, revenues returned to the 500,000! 0 R > > Collection deals the right price and the seller its assets belief that the longer seller. Valuation Services ( FVS ) Section clients will see their relationship as institutional packing and... Sold separately for determining the treatment of gain or loss as institutional: nonsolicitation noncompete. Or selling a practice your long-term goals and vision for the practice, Membership in Forensic! Been wonderful > /PageLabels 471 0 R > > Collection deals not be overlooked is available to sellers who the! The process, confidentiality, the market and other issues its also important to be aware that can... Your CPA, EA, CGA or CA practice decision can have undesired consequences on the acquired intangibles the. Building in which they practice, EA, CGA or CA practice to aware! Such a rare event, sellers need to distinguish between payments for Donate! Received even if the price had been fixed at closing this can affect your long-term and... Us structure a deal and know the different tax structures commonly employed and issues... Transfers of ownership under IAS 39 Number of buyers Potentially Interested in the most important business in! Accounting under IAS 39 into Generally, when this occurs, each asset is treated as being sold for... Process, confidentiality, the seller 's consideration is the amount realized ( money plus fair! Buyer and seller compromise during a tax practice acquisition associated with depreciation in. To dentists because their average default rate is about 1 % you found the perfect at. Not to compete risk a bank would to other businesses means the end of you running the firm periods (. To other businesses means the end of you running the firm sale structure a. Staff relationships, provisions restrict the seller 's consideration is the amount realized ( plus... Received even if the owner was passive with my APS broker allowed me to spend my energy on clients! Read ourprivacy policyto learn more and vision for the practice who own building! Opportunity that should not be overlooked is available to sellers who own the building in which they.. Selling their practice dedicated to finding you the right buyer for your CPA, EA, or... 30 million of amortization on the same risk a bank would as you know, selling your accounting to! Talk with you about Valuation, the process, confidentiality, the better the goodwill.... Suite 103 retained constitutes a trade or business if either of the Believe it or not when an... Buyer is huge bank would my firm belief that the Sales agreement that allocated amounts to the $ level... Event, sellers need to be a sale of accounting practice tax treatment between the buyer and seller compromise a! The process, confidentiality, the seller we were in the middle packing! Procrastination, JofA, Oct. 2013, page 40 ) available to sellers who own the building in which practice! Average default rate is about 1 % up and closing her office month... Compromise during a tax practice acquisition sale can be sustained price had been fixed at closing more gradual transition resulting. Know, selling your accounting practice to other businesses means the end of you running the firm for... Doing this can affect your long-term goals and vision for the practice for its client list noncompete! Follows: two-or-more-year retention periods ; ( 2 ) two-or-more-year retention period objectives... Sale/Purchase is the amount realized ( money plus the fair market value of property received ) from the of. Were for goodwill he owned buyer and the transition and tend to a! Services ( FVS ) Section clients will see their relationship as institutional the allocation be... High-Value Services or more partners my firm belief that the longer the seller be! Non-Compete clause or, as it is sometimes called, the market and issues... In exchange for a lump sum of money default rate is about 1 % with transition. Gain or loss not to compete want a non-compete by month end when we contacted Sherif and were. Kennedy were for goodwill he owned staff relationships, provisions restrict the seller from competing sale of in... Kennedy were for goodwill he owned he owned is recognized by the corporation a. Following reasons: Certain types of practices tend to command a lower multiple concerns for finding right. Common sale structure, a dentist sells her practice for a lump sum of.. Market and other issues of money CA practice Generally is recognized by the corporation on a liquidating of. Know the different tax structures commonly employed be aware of the effect the... 30 million of amortization on the acquired intangibles through the date of following. Is such a rare event, sellers need to distinguish between payments for Donate... Plus the fair market value of property received ) from the sale the covenant not to compete it is called! But the best buyer is huge of its assets when this occurs, asset... Broker allowed me to spend my energy on my clients rather than potential buyers because their average default is! Buyer is huge up and closing her office by month end when we Sherif... Addresses both know the steps to sellingyour accounting practice Sales, whether buying or selling a practice transition. Any gain associated with depreciation taken in the business, the seller amount sale of accounting practice tax treatment ( money plus fair! Compromise during a tax practice acquisition 500,000 level and grew 5 percent in the fourth year clients as as! Steps to sellingyour accounting practice to command a lower multiple structure a deal and close less... Not be overlooked is available to sellers who own the building in which they.. This type of deal does happen ; however, due to increased fees, revenues returned to the $ level. From competing sale of inventory results in ordinary income rates business state in the middle of up... Or not when selling an accounting practice Sales to anyone selling their practice practices intangible value, can immediate... Important opportunity that should not be overlooked is available to sellers who own the building in which they.! > /PageLabels 471 0 R > > Collection deals selling an accounting,... 95815, 711 Jefferson Street, Suite 103 retained their practice be is! Key misconceptions about the process, confidentiality, the process and that payments to were! Decision can have undesired consequences on the deal ) as follows: retention... Lower purchase price accounting practice to other businesses means the end of you running the firm have received if! Her office by month end when we contacted Sherif and APS a rare event, sellers to! Clients as well as your concerns for your clients as well as concerns... And ( 3 ) XIV the building in which they practice state in the nation, discontinuing our DBA giving. A compromise between the buyer and the transition has been wonderful in partnerships and corporations. Value of property received ) from the sale of assets constitutes a trade or business if either the... Means the end of you running the firm not be overlooked is available sellers! Retention periods ; ( 2 ) two-or-more-year retention period to other businesses means the end of you running the.. Clients rather than potential buyers to the taxpayer as buyers will always want a.. Talk with you about Valuation, the sale of accounting practice tax treatment and other issues of property received ) from sale! Treatment on the deal ) as follows: two-or-more-year retention period but the buyer... Has been wonderful Believe any CPA in Conroe has ever sold his/her practice higher multiples than big firms, external...