I agree that speaking to a tax professional one on one would be very beneficial prior to acquiring any business.
However, some high level discussion:
- You need to consider the type of entity in which you will operate
- You need to consider how you will be acquiring the business; stock purchase or asset purchase
- If an asset purchase, there is a specific IRS form that needs to be completed that will detail at a high level the type of assets sold / acquired.
- If an asset purchase, the asset class will determine the depreciable / amortizable life of the purchase price
- There are fewer stock purchases these days, however, there is an option to acquire the stock and treat it as an asset acquisition.
The bottom line is generally with an asset purchase you are able to either depreciate or amortize the purchase price over a period of time.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
