Hi everyone, Can I claim my business loss against my wages income in my tax return. I did have an assessable income of $20,000 for the year in my business. Thanks
Depends on whether you are caught by the Division 35 non-commercial business loss provisions. Small turnover businesses lacking significant assets and never having turned a profit can end up having their losses quarantined. Check out the ATO website and see if this may apply, but better still ... ask your Accountant ! Cheers, Rob
I think more information would be needed - what is the nature of the business? How is the business structured (Pty Ltd, Sole Trader, Partnership, etc) ? Has the business previously shown a profit? How long has the business operated.
Have you had a private ruling from the ATO confirming you are a business of trading in securities ? Carrying on a business of share trading In which case you will have been valuing trading stock at year end and declaring income or claiming deductions based on unrealised changes in value as well. Also, you will be paying tax on trade gains without any 50% discount. Otherwise the ATO might regard you as an investor, and losses will be on the capital account. These will not able to be deducted except against other capital gains. Cheers, Rob
Hi Rob, I dont have a private ruling from ATO confirming I am in a business of trading shares. However, (1) I have made more than 50 trades in a year. (2) The combined value of the trades for the entire year has been well above $100,000. (3) I dont hold shares for a long period. Maximum 2-3 weeks. Thanks Kashyap
Based just on those facts, your assumption that you are a trader seems reasonable. You still need to talk to an Accountant to see whether you could even increase your "losses" by optimal valuation of your closing stock, if you have other assessable income. Cheers, Rob PS Publishing your details can attract spruikers and spammers !!
