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Nov 10, 2021 10:17 AM UTC
Question

Purchased a small retail business

I purchased a small retail business for cash.  How do I expense the funds I used to pay for it and do I issue a 1099-MISC to the person I purchased it from?

1 reply

Rustler
Nov 10, 2021 12:33 PM UTC

From the sounds of it you should get the help of a cpa to get started out right.  But basically you should have received a balance sheet and an itemized list of the inventory items with cost and qty.

 

The money you spent is not an expense, it purchased the assets and inventory on that balance sheet and if you paid more than what all that is worth, the amount is called goodwill, an asset which you amortize