I am a small business with less than $1 million in sales and purchasing another CPA client listing for $200k still keeping my sales under $1 million. I utilize cash basis for tax reporting. Looking to report purchase of client listing as expense/cost during period of actual payments over two year period. Normally this purchase would be capitalized as an intangible and amortized over fifteen years- however looking for deductions for amounts paid in the two years due to cash basis of tax reporting. Is this possible and can you direct me to the IRC where I can possibly defend this position. Otherwise taxes could be very significant and cause me to rethink the purchase. Thank you.
Unfortunately I have no experience in dealing with this type of transaction. I recommend that you find a tax expert who can review this transaction for you and give you the guidance that you need. To find a local expert, check out this article:
All the Best-
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