Pest Management Professional, December 2013
dreaded double tax If the goodwill belongs to the individual the double tax can be avoided upon sale See Personal or business page 24 THE VIEW FROM THE IRS The IRS scrutinizes these types of transactions and can and will challenge them if theres little or no proper documentation detailing the business vs the personal goodwill If the IRS determines the personal goodwill was a last minute strategy to reduce the tax liability the transaction will be denied Since 2008 there have been several cases in which taxpayers unsuccessfully attempted to apply the Martin Ice Cream concepts and lost primarily because of lack of preparation and documentation However the Martin Ice Cream concept is still a viable strategy as long as taxpayers take care to 1 Get professional appraisal s that value the company assets and support the personal goodwill allocation Continued on page 32 r DISINFE TS GERMICIDE MILDEWCIDE BACTERIOSTATIC FUNGISTATIC KILLS DUST FLEAS TICKS SALMONELLA CHOLERAESUIS PROTEUS MIRABILIS PSEUDOMONAS AERUGINOSA PENICILLIUM VARIABLE TRICHOPHYTON MENTAGROPHYTES INTERDIGITALE HERPES SIMPLEX II VACCINIA VIRUS ASPERGILLUS NIGER www mypmp net Pest Management Professional December 2013 31
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