If I buy a business for $50,000.00 and half of it is for assets and the other half is for the customers. How do I write off (or depreciate) the purchase of the customers? Or what form do I read to find this?
Is it an investment that can be carried forward to next year or writen up as a loss this year to reduce W-2 wages?
Thanks ____ _ | __\_\_o____/_|
"John" wrote
Sounds like you are talking about a Section 197 intangible asset, amortized over 15 years on a straight line basis.
Form 4562.
You can not deduct it in one year. Only if ~~~ALL~~~ of those customers were to not become customers for some reason would you be able to write off the remaining amount.
Thanks,
I found section 197 in Publication 535
I'll go read it now . . .
John
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