Q: If a contract with a new client requires money to be spent to complete the contract, is that money a business expense?
My business is looking to acquire a new client. The contract with this client would require me to spend some of that money to complete with the contract itself. Would I be OK to write off that money spent as a business expense, or would I be taxed on the complete income?
A: Nearly any legitimate business expense can be discounted against revenues. I think you will need to be more specific on your question. If you are having to spend money to acquire new or specialized equipment or an upgrade of some sorts then absolutely.
I hope this helps.
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