Ordinary Income or Capital Gains

Oct 15, 2015

  1. ces1040
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    ces1040 New Member

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    Allstate agent sells book of business. Is payout ordinary income or capital gain?
     
    ces1040, Oct 15, 2015
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  2. Lightpost
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    Lightpost New Member

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    Ordinary income. Trust me on that one. I sold my Allstate book in 2010 & was told it was Capital gains and filed accordingly. IRS say NO! ! ! I fought them for 3 years & finally had to pay them. Talk with your CPA but plan on the income route vs. CG . Good Luck !
     
  3. sellingny
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    sellingny Expert

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    I was recently told it was Capital Gains
     
  4. Lightpost
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    Lightpost New Member

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    " I was recently told it was Capital Gains " The IRS may have changed the rules on this but I would talk to your CPA on this one. I called the IRS before I filed my taxes on this & was told by one of their reps that the income would be treated as CG. I wrote the Reps. name, his badge number , date & time I talked with him, EVERYTHING down. I used his info when I filed & when the IRS said I filed it incorrrectly I gave them this info that told me that their reps were there to help however, their advice was not always correct & it was up to the taxpayer to verify & file accordingly. Iwould tell you again to talk to your tax professional.
     
  5. AboutThatLife
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    AboutThatLife Guru

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    Lightpost is giving you good advice. Just like you are a professional, so is your CPA/Tax Advisor. So if you ended up in the same situation, you would not have had to pay the IRS back out of your own pocket.
     
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