Albuquerque Journal, August 15th, 2005
Q: I recently purchased a business, and I need some help in how to treat the assets for tax purposes. The purchase price was $450,000. I borrowed $250,000 from my parents and $70,000 in a homeequity loan. The other $130,000 came from a settlement I received in a personal injury suit. I signed a contract for the $450,000 purchase price, but it says nothing about what I paid for each of the assets that I received. I am now trying to set up an accounting system that I want to work for IRS purposes, and I don't understand what I should record as the cost of each asset. How do I spread the cost a...
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