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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595
Annotation 395.1115
(f) Sale of a Business Generally
395.1115 Escrow Established Equipment Sales Price. In a sale of a business, the escrow instructions signed by the seller and the buyer provided the following:
"It is mutually agreed by the vendee and the vendor that the consideration paid is $9,000 for the license, $15,000 for the fixtures and equipment and $4,000 for the covenant not to compete." The sales price of the equipment in this transaction is $15,000 as set forth in the escrow instructions even though this is higher than its book value and the successor, after operating the equipment for only one month, sold the equipment for $6,500. 4/27/64.