Has your business made a tax loss this year?

This has been a difficult year, and your business may have made a tax loss.

A tax loss is when the total deductions you can claim, excluding gifts and donations, are greater than your total income for an income year.

If your business makes a tax loss, you may be able to:

  • offset the loss in the same income year against other assessable income, or

  • carry forward the loss and claim it as a business deduction in a later year.

If you’re a sole trader or in a partnership and want to offset a tax loss, first check if you meet at least one of the non-commercial losses requirements.

If you do meet the requirements, then you can offset the loss against other assessable income (such as salary or investment income) in the same income year.

If you don’t meet the requirements, you can defer the loss or carry it forward to future years. For example, you can offset it when you next make a profit.

If your business is a company, you can generally choose the year you want to claim a deduction.

Remember, registered tax agents can help you with your tax.

Please contact us on if you need further assistance on this topic.

 

 

Source : ATO Small business newsroom August 2020 

Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Has-your-business-made-a-tax-loss-this-year-/

Important: This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The post Has your business made a tax loss this year? appeared first on FPG Independent Social & Individual Website Feeds.