Franchise Purchase and tax deductionsI purchased a franchise in a home inspection business in 2004. What are my options regarding filing my taxes for 2004? Can I deduct the whoel thing, mortize it, depreciate it, what?
Depending upon exactly what you bought, there may be some current deductions, although some expenses, unfotunately, may need to be amortized. The purchase of short term supplies and expendible materials would be immediatey deductible. Equipment would need to be amortized over the life in accordance with the type of property. The franchise fee may be amortized over 14 years. You will need to consult a tax and business attorney to review the documents you signed and to determine the tax treatment.Some of the tax issues are discussed on my website https://www.taxesq.com/