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I am looking to buy a local business and I am wanting to…

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Hi there I am looking...
Hi there I am looking to buy a local business and I am wanting to know if the tax records are right in line. I know that as a business owners try to hide as much money for right offs. I have the tax records and they state total sales but show lots of right off, so my my question is if this business would be a business to buy or stay away from.
Tax records show for 2014 total sales of $199923.00 and a loss of $5400
2013 $216480.00 with a loss of $5800
2012 $213890 with a loss of $5300
Owner is selling the business for $110000.00 he just wants out because he doesn't have the passion for the business anymore.
Submitted: 2 years ago.Category: Business Law
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Answered in 1 hour by:
1/21/2016
Business Lawyer: KLAW, Attorney replied 2 years ago
KLAW
KLAW, Attorney
Category: Business Law
Satisfied Customers: 2,498
Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
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When purchasing a business and its assets, which includes it's losses you must be very diligent with conducting a thorough examination of the companies books and records. Legally you must do your due diligence and obtain a correct accounting of the actual profits and losses. Many businesses have two sets of books, one for the tax man and the other for themselves. My advice is to have a CPA examin the books and records to see if you are buying a profitable business.

Do not sign a purchase agreement until a tax professional looks at the books, receipts, records and other financial transactions.

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