topic I bought out a business to add to mine. It's internet hosting. Where should I enter this on my taxes. Can I simply depreciate the cost over a number of years? in Deductions & credits

I bought out a business to add to mine. It's internet hosting. Where should I enter this on my taxes. Can I simply depreciate the cost over a number of years?

richard10 — Tue, 04 Jun 2019 00:27:20 GMT

I bought a business for < $10,000 to add to mine. It's for internet hosting, so basically a number of customers now pay me for hosting their websites and I have a couple of other servers I rent to make that happen. I paid the remaining loan amount that the old owners had directly to the loan company.

Is there a special form I have to fill out to take a deduction, or can I just make the acquisition a regular cost that is depreciated over a number of years?

You would be able to amortize the cost of purchasing the...

IsabellaG — Tue, 04 Jun 2019 00:27:21 GMT

You would be able to amortize the cost of purchasing the business.

Enter this under Assets/Depreciation, and on the screen Describe this Asset, check Intangibles, Other Property. See the screenshot.
On Tell Us a Little More, choose Amortizable Intangibles
When you get to the screen Select a Code Section, choose 197. (See this link, and search for Section 197 Intangibles Defined.)

Your amortization will be computed.

Re: I bought out a business to add to mine. It's internet hosting. Where should I enter this on my taxes. Can I simply depreciate the cost over a number of years?

jfitz3495 — Sun, 09 Jan 2022 14:48:55 GMT

Over what period of time would I have to amortize "insurance in force"

Re: I bought out a business to add to mine. It's internet hosting. Where should I enter this on my taxes. Can I simply depreciate the cost over a number of years?

Critter-3 — Sun, 09 Jan 2022 15:46:58 GMT

It is automatically a 15 year amortization.