Say you want to buy a business. Your possible tax deductions start when you begin thinking about and investigating the business to buy.
You have to admit that sounds weird. But that’s the law that governs tax-deductible expenses in this area.
For example, you might meet with a friend over dinner to try out your “buy a business” idea. The cost of that dinner can qualify as a tax-deductible start-up expense if you buy a business.
When thinking about the business to buy, you likely would not know what to keep track of if you were not reading Tax Reduction Letter.
Create a Business or Buy a Business
In last month’s article titled “Tax Benefits for Thinking About and/or Starting a New Business,” you learned how the thinking and investigatory process to create a business generates amortizable start-up expenses.
This thinking-about-it process, technically called the investigatory phase, also applies when you buy an existing business. However, with an existing business acquisition, ... Log in to view full article.