Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Here is my situation. I own a single member LLC that files as a disregarded entity. Under this company, I have created a successful mobile app that makes very good money.

Recently, another company offered to buy me out and I agreed and has bought the app and paid a lump sum for it.

Since this app was created by me over the last 2 years, I've owned it for over a year.

My question is, can I claim the lump sum for selling it to another company as a long term capital gain, and if so, how do I write this up on my taxes?

Obviously I'd like to avoid claiming this as ordinary income and pay more than 10% more taxes on it.

Any help would be appreciated.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.