Hi , pls assist .
If I have a taxable income of ( before personal super deduction or business or rental property losses) 30,000.
And I have business loss 5,000 , rental property loss 2,000 , which of the two should be deducted from the taxable income to work out the claim limit on personal supuer.
Assume notice of intent process properly followed and no other limits apply.
Thanks
Hi @Joachim
You would deduct your super (and other deductions) then apply your business loss if eligible. You can then carry the remainder of your losses forward for future returns until you can claim them again. Losses can be carried forward indefinitely.
Ari
Hi @Joachim
Are you self-employed as a sole trader ? I get that feeling based on your situation description.
If that's the case then you don't have to make super guarantee (SG) payments for yourself.
If you did want to make concessional contributions to super for yourself you can contribute up to the cap of $25,000 in any year.
The 9.5% SG amount is just a guide for self-employed people, it's not compulsory like it is for employers paying their PAYG employees.
If you wanted to follow this guideline then you would use your gross income before any deductions.
You can read more about concessional contributions and contribution caps online here.
I hope that answers your question.
RIchATO
Hi @RichATO Thanks for your reply . but my question is not about statutory super and is about personal ( out of pocket super) that you have correctly referred to as the option I could take.
I understand the 25 k Cap and if fine with that concept.
My question is lets say I expect to claim a deduction for the 'NON concesisonal super I have contributed to the superfund'. (Label D12 of the ITR.)
The notice of intent and every other thing has been taken care of.
But from what I know I need to have sufficient net income in my return to offset against the deduction so that no taxable loss is created.In other words the dedution at d12 cannot exceeed net income in the return.
So my question is how to work out the net income.of there is a business loss as well
for e,g if
Salary 25,000
work related deductions 4000
Business loss 15,000 ( loss tests passed)
Notice of intent amount is 16000
Net income before business loss is 21k
What would be the order to set off personal super amounts and business losses.?
If super is deducted first then it would be 5000 k ( 21 -16) income and is then reduced by business loss.
Ig business loss is used first , 6000 k (21-15) remaining and since I cant create a loss I would only be able to use 6000 k out of personal super.
Which is correct ?
Actually this is not a personal scenario of mine.
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