Liquor License - Property in California?

[vdo167]

California

Is a liquor license consider a property? My tenant owes substantial rent in excess of a liquor license. They owe IRS income tax and I wonder if the IRS can collect on the escrow when they sell the liquor license. i have been told that a liquor license is not considered property so the IRS can not collect.

 

[quincy]

California

Is a liquor license consider a property? My tenant owes substantial rent in excess of a liquor license. They owe IRS income tax and I wonder if the IRS can collect on the escrow when they sell the liquor license. i have been told that a liquor license is not considered property so the IRS can not collect.

You might want to consolidate your questions on liquor licenses, vdo167. Forum volunteers prefer that all related questions are kept to one thread. This tends to help us help you.

Thanks.

 

[FlyingRon]

Liquor licenses aren't exactly property. You can't just sell them. You still have to apply to the state for the transfer. Further California law prohibits the license from being pledged against debts. Due that and it likely goes POOF without compensation to either party. Even if you have a corporation owning the license, transfers of stock (over 10%) must be reported. Transfers of a 50% or more need you to go through the transfer application process. Note the transfer is pretty much treated as a completely new application.

Despite your repeated threads on the subject, a license isn't a standalone commodity you can sell or lease out.

 

[quincy]

Liquor licenses aren't exactly property. You can't just sell them. You still have to apply to the state for the transfer. Further California law prohibits the license from being pledged against debts. Due that and it likely goes POOF without compensation to either party. Even if you have a corporation owning the license, transfers of stock (over 10%) must be reported. Transfers of a 50% or more need you to go through the transfer application process. Note the transfer is pretty much treated as a completely new application.

Despite your repeated threads on the subject, a license isn't a standalone commodity you can sell or lease out.

Here is a link to vdo167's other thread, which provides links to California's ABC laws and the answers to the questions posed by vdo167 both here and in his other thread: https://forum.freeadvice.com/business-contracts-franchises-85/financing-liquor-license-617830.html