Business Losses

[#1]

Hi,

I am a sole trader, have a printing business. I also have received some salary.

My business has some carried forward losses from previous years and even this year I have a loss.

I read somewhere that small business can claim business losses against other income (salary) under ATO COVID relief.

Is it possible? Do you have any information on this? Please explain.

Thanks

[#2 · Accepted solution]

Hi @Prasa1 

This is called non-commercial losses. There are some test that you will need to undertake to determine if you are eligible to offset your sole trader losses against other assessable income such as salary or wages. Please check the following link which has extensive information about how this work .

https://www.ato.gov.au/Business/Non-commercial-losses/

Hope this helps

[#3]

Thanks for the reply.

Please advise whether there are any exceptions for these 4 rules as part of COVID relief.

For example- even I do not satisfy any of those rules, can I still offset my losses against salary only for 2020 FY?

Thanks 

[#4]

No COVID exceptions I am aware of