tax right off for buying out compition?

Discussion in 'Business Operations' started by sirsweatsalot, Oct 13, 2002.

  1. sirsweatsalot

    sirsweatsalot LawnSite Senior Member
    from MN
    Messages: 296

    i was just wondering if i bought out compition and just wrote it off like i would buying a new mower? or is it a little more indepth then that?
  2. Very complicated to explain, your CPA will have the best answer for you.

    It all goes to how creative he/she is.
  3. bruces

    bruces LawnSite Senior Member
    Messages: 648

    That about says it. It depends on what you buy. Various components of the business will have different write off periods.

    All can eventually be written off. The term depends on what it is.

    Equipment is subject to normal equipment write offs (depreciation).

    Goodwill or non compete would probably be 15 years.

    Get advice from your CPA, allocate the purchase price in the contract.
  4. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Messages: 346

    I am a CPA and the question you are asking is like asking "What does it take to make a good Football team?" There are lots of variables and the answer is too complicated for an online forum.

    Just go sit down with your accountant and ask: "Purchase or Pooling?" and get ready for an education.

    Dan Norton

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