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Selling company with losses

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

  1. company losses

    company losses New Member

    Joined:
    30th Jan, 2014
    Posts:
    1
    Location:
    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

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney

    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.