Estimation of Personal Goodwill under Section 1060

Separating and allocating value towards Personal Goodwill from Enterprise Goodwill in transactions involving sales of C corporations could lead to potential tax savings at the corporate-level.


Analyzing the presence of personal goodwill in a business and allocating a value involves a mix of quantitative and qualitative analysis that needs an understanding of the business drivers and the ability to attribute the cash flow generated from the business towards personal attributes and enterprise characteristics. We use a combination of a thorough analysis of qualitative factors driving personal goodwill coupled with a proprietary mathematical allocation model to come-up with defensible, conservative personal-goodwill allocations.