Depreciation - Cost Basis For The Asset’S Purchased
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.
Note If you need professional help with "Depreciation" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.