I invested in a business to generate income for myself. The business has struggled and I have lost $160,000 I have put in plus I owe another $40,000. Can I claim these losses as a tax deduction from my income tax?
Hello @Jebo1971,
Thanks for the extra info. 😎
A similar question has been answered in a prior post, assuming you'd have shares in the company itself.
If we're reading your situation right. You can claim the loss as a capital loss but can't offset your personal income. 💸
HI @Jebo1971
Was the business a company or sole trader? If a company where you a director?
Toby
Thanks for the response - it is a company and I am the sole director
I am full time employed with a large corporation. I have not taken a cent out of the business for myself. All money has stayed in the business to cover staff wages and bills etc. Revenue has just not materialized and the costs have exceeded the Revenue substantially and the business is about to cease trading
Hello @Jebo1971,
Thanks for the extra info. 😎
A similar question has been answered in a prior post, assuming you'd have shares in the company itself.
If we're reading your situation right. You can claim the loss as a capital loss but can't offset your personal income. 💸
Hi @Jebo1971
It would be worthwhile speaking with your local registered tax agent and develop a plan for those losses
Toby
22 Apr 2024 · 6 min read time
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