KPMG report - Goodwill, going concern value when disregarded entity becomes a regarded partnership

November 26: Businesses may be operated by entities that are disregarded from their sole owners for tax purposes. When these businesses expand, investors often become co- owners, causing the disregarded entity to convert to a partnership.

The tax treatment of goodwill, going concern value, and other intangible assets in connection with this type of transaction need to be considered by the original owner and the investors.

A KPMG report explains how the technical tax rules operate in these transactions, and discusses what the parties need to consider when planning the transaction to avoid unanticipated tax consequences.

Read a November 2012 report [PDF 324 KB] prepared by KPMG LLP: Dealing with Goodwill and Going Concern Value When a Disregarded Entity becomes a Regarded Partnership

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© 2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.