J
jimmudge
Guest
i purchased a coffee distributorship from the coffee company in March, 2001 for $10,000 which included display racks, coffee & the territorial rights. These items were not separated by cost, just all listed for the $10,000. I then paid a locater $3,000 to secure locations for me to put my displays on consignment. By the end of November, all of my locations had asked me to remove the displays & I effectively went out of business at that time. I have the displays and coffee in my garage & they are worthless. I was operating as a sole propiortorship. How do I list the business on my return and where can I write off the costs. Do I have to randomly assign a value to the displays & depreciate them or can I just claim the entire amount as cost of goods sold. How about the locator fees?