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Texas letter ruling denies capital asset or investment treatment for goodwill and government permits and licensing

On July 22, 2016, the Texas Comptroller of Public Accounts issued a letter ruling addressing the proper apportionment of gross receipts from the sale of substantially all of the assets of a company located in Texas to an entity incorporated in Delaware. Specifically, the ruling provides guidance on the apportionment of gross receipts from the sale of tangible personal property located in Texas at the time of sale, tangible personal property deployed outside the United States at the time of sale, and certain legal and contractual rights, including goodwill, government permits and licensing. The ruling is noteworthy for its determination that goodwill, and perhaps government permits, are not treated as capital assets.