Deferred non commercial losses

 Author: Mlin(Newbie)Newbie

17 Mar 2025

@Taxduck, apologies for the terminology mix up, agree the 250k is not a test but an income requirement.

In relation to the tests, the losses from the partnership will pass the the 500k Real Property Test. Since the partnership will be in losses for the next 5 odd years (due to capital works and tax depreciation), I can only deduct the losses against my personal income.

I haven't been able to utilise these losses in prior years because I did not meet the 250k income requirement and have had to defer and accumulate these.

With this in mind would you have any additional thoughts on my initial question?

"This year, I expect my personal income to be approximately 18k, so I will easily meet the income test.

Since I will be under the tax free threshold, am I required to utilise my deferred losses from my partnership and offset this against my personal income of 18k?

Also in the event that my personal income is say 21k, can I defer utilising the losses from my partnership to a later income year?"

Reply0 likes

• Report as inappropriate