Join our investing community

Selling company with losses

Discussion in 'Introductions' started by company losses, 30th Jan, 2014.

  1. company losses

    company losses New Member

    30th Jan, 2014
    Gold Coast, Qld
    Hi everybody, I am new to investEd and after browsing I believe that I will enjoy this site. My question is as follows: I have been the sole director of a P/L company that I established in 2000. Throughout that period I conducted psychological assessments, counselling and written assessment reports for a large number of people referred by a dozen small medico-legal firms.

    Due to relocating interstate for family reasons a few years ago, I was unable to maintain the momentum of the business and all monies that were owed due to payment upon court settlements, have now been received. The company has approximately $35K in losses but does not have any assets.

    Is it possible to sell the company name with its tax losses to a prospective purchaser? If so, what sum should I expect to receive?

    I have now retired and uncertain whether to close the company, of if possible, sell it with the losses. Any advice would be appreciated.
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006

    You should look into the Continuity of ownership tests
    Continuity of ownership test | Australian Taxation Office

    Also will be difficult to find a buy as purchasers will be worried about potential liabilities yet to arise.