Courtesy of Guest Blogger, Stanley J. Bushner, Shareholder
Buckno Lisicky & Company CPA's
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When you buy a business, after you have agreed on the purchase price and have the necessary financing in place, you want to get the maximum tax benefit.
The buyer has two choices, the first choice is to buy the stock (assuming the selling business is a C or S corporation) and the second choice is to buy the business assets. A buyer in almost all cases should buy the assets. When allocating the purchase price the buyer will want to apportion most of costs to assets that can be depreciated the fastest. This is especially true, since Sec. 179 an accelerated method of depreciation is available in 2014 for all personal property new or used up to $500,000 (not yet passed into law for 2015).