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_dont_know(Initiate)Initiate
19 Sept 2021

Hi,

We have incurred a $20,000 loss in our Partnership out of which $10,000 loss is my share

While filling up my individual tax return, I filled this under "Partnerships" Losses = $10,000.

Loss Details: Partnership loss is classified as one of the type of loss "Other assests used on a continuing basis is atleast $100000". I have entered $10,000 in here as well.

When I try to estimate my tax return, I get the below error:

"Non commercial losses must be less than non-commercial loss threshold"

I believe (from own googling) that, this error message appears if total of non-commercial losses + income is greater than $250000 in the FY.

Is there a way I can declare $10000 loss (my share) in Partnership and then use $5000 as non-deferred loss and another $5000 deferred loss under Loss Details?

I am not sure if it is helpful, but we have already filed the partnership's tax return declaring my distribution of loss as $10000.

Your help will be very much appreciated.

Thank you,

1,209 views
3 replies
1,209 views
3 replies

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Most helpful reply

EmilyATO(Community Director)Community Director
29 Sept 2021

Hi @dont_know You wouldn't be able to offset only $5,000 if the full amount can be applied. You may want to sought professional advice from a tax agent to work out what the best outcome would be for you.

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AriATO(Community Support)Community Support
21 Sept 2021

Hi @dont_know

When you talk about a non-deferred loss this would generally mean you can offset it against other income under the non-commercial loss rules or you chose not to carry it forward. If you can only offset part of your loss then you should be able to defer the rest. Losses carried forward can be used to reduce future income.

_dont_know(Initiate)Initiate
21 Sept 2021

Hi @AriH,

Thanks for responding.

This $10000 is non-deferred loss which I 'technically' can claim against my other income. However, using all of my non-deferred losses would mean that I cross the non-commercial loss threshold. My question is, how to claim some, lets say $5000 of $10000 as non-deferred loss this year and carry forward the remaining $5000 for next year to claim it as non-deferred loss for the future year.

How do I make sure I can claim $5000 that I have deferred this year as non-deferred loss next year a.k.a claim against my other income next year?

Thank you

Most helpful reply

EmilyATO(Community Director)Community Director
29 Sept 2021

Hi @dont_know You wouldn't be able to offset only $5,000 if the full amount can be applied. You may want to sought professional advice from a tax agent to work out what the best outcome would be for you.

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