2007-07-07 16:21:36 · 7 answers · asked by Mae 2 in Business & Finance ➔ Taxes ➔ United States
Any buyer who doesn't run his due diligence is a fool. Part of that is examining your tax returns to verify the income generated by the business. It would include reviewing all of the source documentation as well, among other things.
So, if you are dealing with a buyer who knows what he's doing you had better be prepared to do a full disclosure of anything that he asks for. Get cagey with any of it and you'll lose the sale or have to take a substantially reduced price for it.
2007-07-07 19:19:37 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
if u as the seller want the price asked u must prove someway or an other why u ask the price u did.
depends on what the buyer is actually buying. suggest u get a CPA to determine ur biz actual worth.
i as a buy would request under a confindental agreement to see ur books al of they and ur biz tax returns.
2007-07-07 23:30:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No you are not obligated to show your tax returns to anyone. If you choose to do this, fine. The buyer will want financial records such as cash flow statements and balance sheets.
2007-07-07 23:28:12 · answer #3 · answered by ninasgramma 7 · 0⤊ 1⤋
Yes
2007-07-07 23:27:22 · answer #4 · answered by Mike Frisbee 6 · 0⤊ 0⤋
Yes and financial statements and accounts receivables. The buyer has to know if there are outstanding accounts, also inventory.
2007-07-07 23:29:43 · answer #5 · answered by lighthousecastle 4 · 0⤊ 0⤋
i assume you mean to the buyer.
it is a reasonable precaution on his part, AND I'd give him a copy ONLY of the business portions ... Schedule C or whatever you filed, for the past year or two [he shouldn't need more than that].
GL
2007-07-07 23:27:32 · answer #6 · answered by Spock (rhp) 7 · 0⤊ 0⤋
no it's too risky to reveal ur secret to the buyer if u don't know him well bcoz he may feel jealous of ur business.
2007-07-07 23:27:58 · answer #7 · answered by robert KS LEE. 6 · 0⤊ 1⤋