Small Business Services
I Just Bought A Sole Proprietorship . How Do I Come Up With Individual Cost Amounts For The Different Assets I Acquired ?
Although you purchased a sole proprietorship for 1 amount, that amount must be allocated to the individual assets for depreciation purposes. Allocation is based on the proportion of the sales price to an individual assets fair market value at the time of the sale. Speak to your local CPA about the allocation formulas.
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