How to determine the tax basis for the sale of a service business. The business had almost no physical assets. I basically sold a customer list.

[batsling2015]

I started the business from scratch 26 years ago.  I built it one account at a time.  

[Rainman12 · Accepted solution]

A customer list which you created is treated like artwork, so sale price is 100% taxable. Also called a Section 197 intangible asset. Ordinary income for you, not capital gain. (Person you sell it to Can treat it as capital).