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I purchased a business from the previous owner in 2001. Is the purchase price of that business deductible? Can that be a one time deduction or does it have to be depreciated?
If this is a corporation, then you probably bought the stock and you can not depreciate it or deduct it. You will have a gain or loss on the sale or other disposition of the stock.
If this was a sole proprietorship, you probably bought assets and maybe goodwill. You can depreciate the assets, but you can not deduct or depreciate the goodwill unless it is only good for a limited period of time, in which case you can amortize it.
Thank you very much Loku for your reply. The business was an online business so the purchase price included the website, the domain name, reseller rights, etc.
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