I was offered the tax practice of recently deceased tax preparer. His heirs made no mention of a purchase price for the practice, but they are still rather shell shocked at the loss of their father, and I feel it is my duty to offer them a reasonable price for the practice. I made an initial offer of 20% of gross receipts for 3 years on existing clients, because I had heard of another firm in our area purchasing a tax practice for that amount. They seemed to feel that may be too much, so I was hoping to get some feedback as to whether or not it is equitable.
I am currently employed full time for a public accounting firm, but I'm hopeful this practice will provide a revenue stream that would enable me to become self employed. I think filing the extended returns will provide me with a sample size to help me make that decision.
Thanks for your advice.