Article Date:
January 2014


Word Count:
1189

 

 

Buying a Business? Protect Your Investment and Deduct It, Too


There’s more than one way to buy a business.

 

The method you choose will impact your taxes long after the date of purchase.

 

As a buyer of a business, you want to do two things:

 

1.

Set yourself up to recover your investment cost

2.

Protect yourself from past and future liability

 

Stock Purchase: A Ready-Made Business

 

The simplest way to buy a corporation is to buy the stock.

 

Steve owns a business that you want to buy. Steve operates this business as a corporation.

 

You buy 100 percent of Steve’s stock ownership in the corporation. The corporation and its business are yours. Everything Steve owned in the business now belongs to you.

 

Dangerous Liabilities

 

When you buy stock, you buy the history of the business. ... Log in to view full article.

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