Question

Can I deduct the Purchase of a Business on my Business Taxes?

Forum|Forum|6 years ago
March 10, 2020
1 reply
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In 2019 my business partner and I purchased our first business together. We purchased a coffee shop and the total cost was 75K. My business partner took out a second mortgage for 60K to pay for some of the purchase and I funded the remaining 15K in cash that I had saved. Together, we are paying back her loan and then will pay me back after her loan is paid off. From my understanding, we can write off the interest paid on her personal loan that was used to purchase the business. However, are we able to write off the actual total cost of buying the business (75k), and if so where in Turbo Business Tax do I put this?

TurboTax Business Windows

A

AlanT222

Buying a business is a complicated process. It is not as simple as writing off the purchase price when there are various assets included in the purchase price. View this TurboTax article on the tax aspects of buying a business.

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