KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ****************************** How does tax code treat purchased alarm accounts November 24, 2020 ********************** How does tax code treat purchased alarm accounts ********************* Ken If a company buys a book of accounts does the buyer have to depreciate the contracts over 15 years? That is not what I would think; maybe 5 years or the maximum remaining on each contract term anon ******************* Response ******************* Don’t shoot the messenger. Here is Mitch Reitman’s response: ****** Ken Assuming the alarm contracts are purchased in an arms-length transaction they are Section 197 assets and, like goodwill, have a 15 year life for tax purposes. I think that they should be depreciated over a lesser term, and GAAP requires that they be amortized over the “Estimated life of the asset.” However, the tax code makes no economic sense. The IRS regards them as Section 197 assets and mandates that they be amortized straight line over 15 years. Mitch Reitman Reitman Consulting Group 5408 Woodway Drive|Fort Worth, TX 76133 | 817-698-9999 o | 817-698-0009 f http://www.reitman.us ****************** To order up to dateStandard Form Alarm / Security / Fire and related Agreements, click here: www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
