Do not waste a tax loss19.08.2020
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 requirements for non-commercial losses.
If you do meet the requirements, then you can offset the loss against other australian online casinos assessable income (such as salary or investment income) in the same income year.
If you do not 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.
Confused? Do you have a question about “making the most of a tax loss”? Contact us at Your Business Angels.