Can I expense the payments that I make to the people that I am buying my business from?

[belltyme]

I have been told that I can expense the payments that I make monthly for buying the business.  I pay the people 50% of my monthly profits that is subtracted from the purchase price.  I am a single person LLC.  I just can't figure out where to put it in the Home & Business program that I purchased.

[Anita01 · Accepted solution]

The payment is not deductible as an expense.  It would be part of cash and liabilities on a Balance Sheet but not part of the profit and loss statement you file for a Schedule c.  If any part of the payment is interest on the initial loan or purchase amount, that would be deductible, but not payments on the principal.