Other People's Money
Back to library
Business

Personal Goodwill Allocation

Allocate C-Corp sale price to your personal goodwill — avoid double tax.

Overview

In a C-Corp asset sale, portion of price attributable to owner's personal relationships, reputation, and skills (not corporate-owned goodwill) is sold personally at capital gains — avoiding corporate double taxation. Requires no employment/non-compete contract, documented personal relationships (Martin Ice Cream case). Can save 20–35% of tax on that allocation.

Best fit
C-Corp owners sellingOwner-dependent businessesProfessional practices
Estimated impact
$100k–$5M+ tax savings on personal goodwill portion

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

More business strategies

See all Business strategies
OPM