I've been asked by students about "allocations" in a contract. So I found this to the point description of said allocations to be interesting.
Real estate contracts sometimes reference goodwill, furniture, fixtures & equipment, inventory, covenants not to compete, etc., but often do not allocate values to these items.
The absence of an allocation not only impacts a 1031 EXCHANGE, but also has realty transfer tax, bulk sales tax, income tax, deed and HUD-1 preparation considerations. gchristofely
I've been asked by students about "allocations" in a contract. So I found this to the point description of said allocations to be interesting.
Real estate contracts sometimes reference goodwill, furniture, fixtures & equipment, inventory, covenants not to compete, etc., but often do not allocate values to these items.
The absence of an allocation not only impacts a 1031 EXCHANGE, but also has realty transfer tax, bulk sales tax, income tax, deed and HUD-1 preparation considerations. gchristofely