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No income first year of business

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Hello,
My partner has started a photography business as a sole trader and has obtained an ABN. However in his first year he has made no actual income on the business but has spent a bit of money getting it up and running. This includes setting up the website, purchasing marketing materials (business cards and decals) and doing some free photoshoots (which incurred travel and accommodation costs) to drum up some business and build a portfolio.

The free work has evidently lead to some paid jobs in the new financial year but my question is can the losses for the last financial year be listed on his tax return under the sole trader part, even though he didn't make any income?
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Most helpful response

Community Moderator

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Hi @R177,

 

Welcome to our Community!

 

Generally speaking your partner should be able to carry forward a tax loss and deduct it in future years against income for tax purposes.

 

We have some information on our website about how to claim a tax loss that should help him. He will also need to check the non-commercial loss rules to see if he can offset the loss against his income from other sources, such as wages.

 

Hope this helps! Thanks, @NateATO

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @R177,

 

Welcome to our Community!

 

Generally speaking your partner should be able to carry forward a tax loss and deduct it in future years against income for tax purposes.

 

We have some information on our website about how to claim a tax loss that should help him. He will also need to check the non-commercial loss rules to see if he can offset the loss against his income from other sources, such as wages.

 

Hope this helps! Thanks, @NateATO