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    Business Purchase cost

    TP purchase a business for 80k (he received access to websites and vip wholesale pricing for Travel Arrangement & Reservation Services) does this amount can be deduct it as a business expense under amortization or depreciation for life of 15 years?

    according to the TTB 8-18- purchase of a business is capital expenses and cannot be amortized however TTB 8-5 Capital Cost- the cost of purchasing intangible business property are Capital cost that can be deducted through depreciation and amortization.

    So which one is it?

    In advance thank you for your replies

    #2
    After further research I think I found the answer...the business purchase cost falls under amortizable section 197-intangibles TTB 9-11 Goodwill, Supplier based intangible, operating system, other rights granted by agency. Does this sound about right?

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      #3
      Originally posted by Melanie View Post
      After further research I think I found the answer...the business purchase cost falls under amortizable section 197-intangibles TTB 9-11 Goodwill, Supplier based intangible, operating system, other rights granted by agency. Does this sound about right?
      Sounds right to me.

      Chris

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        #4
        Thanks Chris

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          #5
          Who did he buy the service from...another business? If so, is there a covenant not to compete? Any "hard assets" sch as equipment, computers?

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            #6
            No assets only the system, suppliers list and rights to advertise

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