Hello,
I've started a small business and it's been making losses in the previous 3 years, this year I finally made a small profit. Just wondering how I can claim the losses from previous years? E.g. the tax loss carried forward from previous years is $5000, and the profit this year is $1000. Do I put $4000 under ITEM 13 U $4000 to carry forward the tax loss and $0 in taxable income for this year?
Thank you so much in advance!
Hi @CKi
Yes it's question 13 and label U for companies as well.
To claim a loss a company needs to maintain the same majority ownersip and control. If there is a change of at least 50% then further tests need to be satisfied. You can read more about how to claim a loss on our website.
Hi @CKi
From what you have described you are operating your business activity as a sole trader, correct ? Or are you setup through a discretionary trust ?
If through a trust then yes you are correct.
If you are operating as a sole trader then no, you need to complete the business and professional items schedule for individuals 2021.
Hi Rich thanks for your reply. I'm operating as a company, would that be the same as a trust?
Hi Rich thanks for your reply. I'm operating as a company, would that be the same as a trust?
Hi @CKi
Yes it's question 13 and label U for companies as well.
To claim a loss a company needs to maintain the same majority ownersip and control. If there is a change of at least 50% then further tests need to be satisfied. You can read more about how to claim a loss on our website.
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