Archive - October 2010
Personal Goodwill Developments October 19, 2010
Ever since the Martin Ice Cream case, personal goodwill has been the sweet spot of disposing a business. The disposition of personal goodwill is generally taxed at capital gains rates of 15% and as long as there continues to be an arbitrage between capital and ordinary rates, taxpayers will likely persist in attempting to fall within the personal goodwill cubby hole. In the fund context the issue usually arises for fund managers in the estate planning and divorce context, or at the fund level if the fund is on the buy side and a founder is trying to sell all or a portion of its business...