Treating Serious Traffic Drop as a Business Loss

Discussion in 'Business & Tax Advice' started by rus1239, Oct 27, 2012.

  1. rus1239

    rus1239 Newbie

    Oct 29, 2011
    Likes Received:
    I'm in the USA. I had a successful tv show website, that is now worthless.

    Here is the story:
    Early in the year, all the SOPA/PIPA bull was causing all the video hosts to mass delete all their videos for fear of being the next megavideo. All this created a huge fear and uncertainty in this niche, and as a result my site traffic dropped quickly and steadily. Now there is no way to fix it, it is worthless and I gave up hope on the site a long time ago.
    Here is the thing tho: The site did make a decent amount of revenue this year (even though now it is not making anything). I put hundreds of hours into this site and operating it. I was thinking that maybe I can write off the huge drop in traffic and revenue as a business expense / capital loss or something.

    I can prove my case with google analytics and my ad network's revenue history for my site. Essentially what I'm trying to say is that my business lost an important intangible asset: the Goodwill of visitors. Real publicly traded companies actually expense intangible assets pretty frequently.

    I'm trying to figure out a way to put a reasonable cost of the permanent loss of traffic (and essentially end of the business). I can seriously argue that all the work I put in on the site was worth something, so I believe I should be able to deduct it somehow.

    Can anyone give some thoughts and advice?
  2. Moneyman94

    Moneyman94 Junior Member

    Sep 2, 2010
    Likes Received:
    New York
    I think your loss is no different than a retal shop losing sales. They cant write that loss off.
  3. unclemike

    unclemike BANNED BANNED

    Nov 6, 2012
    Likes Received:
    You are going to have to show the steady income you were making on this venture. Also it will need to be
    a registered business before you can receive any benefits like this.