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Re: Business Loss Offset

Newbie

Views 408

Replies 1

Hey ya guys, i have earned salary income last year under my own company (as an employee of the company). I also have business loss from other entity which happens to be a company. Can I offset that loss under my personal tax return. I am shareholder of that company.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @varshasamuel78

 

Thank you for your question.

 

A company is a separate legal entity to you, and so the profit and loss cannot be transferred to your individual income tax return, even though you are the shareholder. You may be interested in this similar thread: If I investing into my company and loss, does it count toward my capital loss? However, if you are deregistering the company, you may also be interested in the information in this thread: tax return for new company that's losing money

 

The company will need to lodge a tax return to record the loss. Here is information about claiming losses on our website: how to claim a tax loss. There is also information on the page about transferring losses to a consolidated group.

 

I hope this helps

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @varshasamuel78

 

Thank you for your question.

 

A company is a separate legal entity to you, and so the profit and loss cannot be transferred to your individual income tax return, even though you are the shareholder. You may be interested in this similar thread: If I investing into my company and loss, does it count toward my capital loss? However, if you are deregistering the company, you may also be interested in the information in this thread: tax return for new company that's losing money

 

The company will need to lodge a tax return to record the loss. Here is information about claiming losses on our website: how to claim a tax loss. There is also information on the page about transferring losses to a consolidated group.

 

I hope this helps