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Submitted 219 days ago...

Jib962

New User (2)

How do you figure out the Capital Gains Tax on a Music Store/Music School in 2005?

HELP SOMEONE!

I need someone's help.
I sold my music store/school in 2005 for $250,000. I feel this was a below market value based on our earnings, but can't figure out what the Capital Gain Tax?

We paid the brokers, $20,000, we received $180,000 in cash in 2005 and have a promissory note for the balance of $50,000 for 3 years.
Escrow allocated the sell of the business as follows:

Goodwill of $50,000,
Fixtures/Equipment of $5,000, Inventory of $25,000, Customer List of $60,000, Covenant Not to Compete of $60,000, Leasehold Improvements of $50,000 .
Total of $250,000.
Howt is the best way to pay the least amount of Capital Gains Tax?
What kind of CGT will it be? If our Profit and Loss Statement for 2005 is a Net Loss? Will our CGT be at 5% or 15% tax rate?
What can I do to minimize the tax?

Please let me know ASAP .
Vacaville , California

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