Buying Sites that make money from Adsense? Tax Question

Discussion in 'Payments' started by totoros, Dec 11, 2006.

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  1. #1
    I have a question about buying sites, adsense, and taxes.

    I bought a site here for quite a lot of money The site makes a decent amount each day but it will be some time before I will get back what I payed for (10 months).

    My question is if there is anything I can claim tax wise because of the purchase of the site or do I just have to pay taxes on the earnings and therefore would not recoup my payment for awhile (15-20 months)
     
    totoros, Dec 11, 2006 IP
    Shmel likes this.
  2. asapcorp

    asapcorp Banned

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    #2
    Not sure. But it depends on your contry tax act.
     
    asapcorp, Dec 11, 2006 IP
  3. tobycoke

    tobycoke Well-Known Member

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    #3
    IANAL, but a website is not a depreciable asset so I expect you would treat the total cost as an expense against earnings in the first year.
     
    tobycoke, Dec 12, 2006 IP
  4. DirtyDog

    DirtyDog Well-Known Member

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    #4
    Yep this is how it would work. If your income for the year ends up being less than the cost of the site, then it may have been a good idea to purchase it after the first of the year. BTW - if your purchase is going to pay itself back in 10 months, that really isn't very long at all and you did well buying the site.
     
    DirtyDog, Dec 12, 2006 IP