joanmcq Posted May 19, 2014 Report Share Posted May 19, 2014 I am having a major brain fart. S-corp is buying convenience store & there are a bunch of escrow/purchase fees. Start up costs, since he will take over the operation of the store next week. Do I book as start up costs as an asset to be amortized on the actual books, or as an expense and make an adjustment on the M-2 for anything over $5000 in start up when doing the 2014 tax return? Quote Link to comment Share on other sites More sharing options...
Lee B Posted May 19, 2014 Report Share Posted May 19, 2014 These fees are really associated with the purchase of the assets. So the fees could be allocated to the specific assets and then depreciated. If any of the fees are associated with a loan or a purchase contract they could be capitalized and amortized over the life of the contract or the loan. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted May 20, 2014 Author Report Share Posted May 20, 2014 There are no loans. A large portion of the purchase price is allocated to Goodwill. Only 20k is allocated to fixed assets. Does this change your response any? Quote Link to comment Share on other sites More sharing options...
Lee B Posted May 20, 2014 Report Share Posted May 20, 2014 Then the majority of the fees would be allocated to Goodwill. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.