The Tax Aspects of Acquiring a Business

Index

AFR. See Applicable federal interest rate

Aggregate grossed-up basis (AGUB), 66

AGUB. See Aggregate grossed-up basis

Applicable federal interest rate (AFR), 12–13

Asset valuations

appraisal value of, 5–6

Class IIIA, 6

contingent amounts, 7

cost classifications, 7

cost of tangible vs. intangible assets, 8

cost recovery period, 3

expected future cash flows, 2

intangible assets (see Intangible assets)

seven classes of assets scheme, 2–3

tangible assets, 1

tax benefits as a proportion of cost, 3–4

tax lives, 1

Business investigation expense

employee training costs, 84

expansion of an existing business, 86–87

investigatory costs, 83–86, 84–85

start-up costs, 84

tax rules for, 84

trade or business expenses, 84

Code, tax, 21, 35, 38, 62