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Thread: customers are not tax deductable

  1. #1
    Senior Member chaplain's Avatar
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    Default customers are not tax deductable

    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:

  2. #2
    george
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    Default Re: customers are not tax deductable

    As long as you get a receipt with abn from the guy you purchased the customers from it is tax deductable.

  3. #3
    frosty
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    Default Re: customers are not tax deductable

    Quote Originally Posted by george
    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.

  4. #4
    Senior Member chaplain's Avatar
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    Default Re: customers are not tax deductable

    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

  5. #5
    frosty
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    Default Re: customers are not tax deductable

    Quote Originally Posted by chaplain
    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

    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.

  6. #6
    Senior Member chaplain's Avatar
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    Default Re: customers are not tax deductable

    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 .

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