Buying a Business, Amortizing Lease Value, Saving MoneyA client wanted to buy a business and was not sure which business entity to use. When we found out that the deal included assuming a low-cost lease on a huge warehouse he wanted, we advised getting a valuation on the lease and recommended forming a Corporation. This made it possible for the buyer to amortize a portion of the purchase price over a three-year period instead of the 15 years otherwise allowed. Choosing the correct business entity and analyzing the underlying assets allowed him to take advantage of this money-saving strategy. |
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