Thread: Sell of clients

I am considering selling my business. In this regard, the sale is the futures of clients receiveables. The amount of the sale is two years worth of receivables, half of which would be realized this year 2008, then the other half would be 2009.

For example, we have $200,000 in annual billables. The total sale will be for $400,000. Being that we are that end of the current year, we have realized $160,000 in billables. The purchaser will pay $200,000 bringing our annual total to $360,000.

Next year we will only generate the $200,000 in billables due to this year 2008 sale of the future receivables.

My question is how does this affect the capital gains taxation? In addition, are there any legal suggestions of how to best offset the additonal returns?

Thank you
payrollman

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1. Entity type
2. years in business
3. depreciation data
4. capital investment
5. describe owner conditions (shares/stock/units(LP,LLC,LLP,LLLP,Corp,S-Corp))

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