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BlakeATO(Community Support)Community Support
7 June 2021

Hi @WilliamHu

You must assess the business non-commercial losses as their separate activities. This is the second step of working out if you must offset or defer a non-commercial loss.

There's more to it than just the number of business activities, though.

To offset a loss against other income, in addition to the steps for non-commercial losses, the entity must meet one of the four tests. If they do, they can offset the loss from one activity against another. If they don't, then the loss must be deferred until that activity runs at a profit.

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WilliamHu(Champion)Champion
7 June 2021

Hi @BlakeATO ,

Thankls for your reply. But Non-commercial losses affects sole trader and partner. My question is that whether or not the loss and profit of 2 types of business operated under the same company can offset each other in working out company tax return. Any further advise? Thanks!

AriATO(Community Support)Community Support
8 June 2021

Hi @WilliamHu

For the tax return it appears all income and expenses etc.are calculated and reported for the company as a whole instead of reporting each business activity separately.

Take a look at Item 13. Losses information under the Company tax return instructions on our website for further information.

Ari

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