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Mike12321
Level 4
April 14, 2025
Solved

How is the purchase of a business accounted for?

  • April 14, 2025
  • 2 replies
  • 10 views

Client purchased a soda vending machine business for $10,000. How is this accounted for on the tax return? Is is just not recognized until the business is sold at some point in the future?

This topic has been closed for replies.
Best answer by Jim-from-Ohio

Amortizable over 15 years

2 replies

Accountant-Man
Accountant-Man
Level 13
April 14, 2025

What was purchased, customer list, workforce, machines, inventory?

What does your paid, professional accountant say?

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    M
    Mike12321Author
    Level 4
    April 14, 2025

    I believe it is just the territory. The soda companies own the machines.

    He had to restock the when he purchased the business.

    Jim-from-Ohio
    Jim-from-OhioIntuit Community ChampionAnswer
    Intuit Community Champion
    April 14, 2025

    Amortizable over 15 years

      George4Tacks
      George4Tacks
      Level 15
      April 14, 2025

      One more thing for buyer and seller to do. https://www.irs.gov/forms-pubs/about-form-8594

       

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