I have a question about attributed Personal Services Income.
The facts are as follows:
1) I trade as a company, but the income is PSI as it doesn't meet any of the tests to be a PSB.
2) My net PSI income *before* paying a wage to myself (with PAYG withheld) is $45,000
3) I have lodged wages on the monthly BAS' to the ATO of $50,000 meaning the net PSI loss is $5,000.
My questions are as follows:
1) Is the wage to myself included in the attributed PSI calculation? I assume it is.
2) Is the best thing to do to amend a BAS or two to reduce the gross wages to myself to $45,000 to reduce attributed PSI to nil?
3) If I do not amend the BAS' as above, there will be an attributed PSI loss of $5,000. Should this attributed PSI loss be entered in my personal return as a deduction / negative income amount? I have seen guidance from the ATO that this is the case, but I'm not sure how to actually do it. Is it treated as a negative income amount at either item 9 (attributed PSI) or item 14 (PSI) or is it a deduction at item D15 (Other deductions)?
The other alternative to transferring the attributed PSI to my personal return is to leave it as a loss in the company but this does not seem optimal (the company already has carried forward losses).
34 views
1 replies