Do you make a loss from a business activity? 2. Do you carry on that activity as an individual, either alone or in partnership? If you answered yes to both of these questions then you must defer that loss, unless you meet certain conditions.
If you make a net loss in a business activity you may, under certain circumstances, claim that loss by offsetting it against your income from other sources.
You must first meet the income requirement before you can use one of the four tests to pass the non-commercial loss rules. If you subsequently pass one of the four tests, you can deduct your loss. Information current for 2009-10 and later income years.
If you are carrying on more than one business activity, they can be grouped together when you need to establish whether you can deduct a loss.
Contact South East Access for individual advice regarding non-commercial losses.
Phone: (02) 4454 4444. Office hours are 8:30 am to 5:30 pm. Email
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