How do I track owner buy out payments

[vanesessagill]

We are buying out the owner of an incorporated company over the next 2 years. We make monthly payments to the owner. Should I enter the former owner as a contractor, book the payments in payroll, and 1099 him at the end of the year?

Thanks!

[AmeliesUncle]

Are YOU (an individual person) buying the stock that the other person owns?  Or is the corporation buying back its own stock?

In most cases, the individual (you, as a person, not the corporation) buys the stock.  If that is the case, you don't report anything in connection with the purchase of the shares.   You just keep track of what you paid for it.

[Mike9241]

if you are paying interest on the installment purchase, it may be deductible on schedule A as investment interest. However 1) you would need to itemize your deductions 2) the interest paid is only deductible up to the amount of investment income - form 4952