Hi every one I am new to the forum I spoke to a contractor at the side of the road and he said that customers that you purchase are not tax deductable does any body know if thats true:
Hi every one I am new to the forum I spoke to a contractor at the side of the road and he said that customers that you purchase are not tax deductable does any body know if thats true:
As long as you get a receipt with abn from the guy you purchased the customers from it is tax deductable.
Goodwill ( purchasing customers) is not tax dedutable as it is a capital expenditure. Interest on any loans to purchase customers is howerever a tax deduction.Originally Posted by george
Thanks Guys
The people at Indy Mowing said that goodwill wasnt worth anything because the sellers good will was his and that i had to build my own with the new customers i purchased . I didnt realise that the Tax Department
thought the same Bloody way lol
Originally Posted by chaplain
Well we all have different opinions of course , but if you bought my customers for instance which have been established over many years and are all well priced easy jobs you would save many years of weeding out non payers , crappy underpaid work etc. NOT all customers are created equal.
Dean said that it was most important that it was all on the books all done by accounting records so that i could see the round perfectly then make my decision .You are so right Frosty thanks for your advice .