Hi,
I recently purchased a franchise with Jim's . It costs $28,000 initially. I understand that this is considered as investment in the business and cannot be claimed as deductible expenses.
Due to personal circumstance I could not keep operating the business and willingly surrendered the franchise back to Jim's . This also happens in the same financial year that i purchase it.
So i was wondering can this be considered as capital loss in my end of year return? As i have given up my right to trade under Jim's brand my franchise/business ceased to exist . I didn't profit anything from the event of closing the business down as it is not sold to anyone .Hence my initial investment of $28k is a complete loss.
Can someone please help to clarify.
Many thanks
Kevin
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