Completing non-commercial losses labels in the 2003 Individual tax return

A series of examples of how to complete the non-commercial losses labels in the 2003 Individual tax return.

Last updated 2 July 2003

Introduction

If you are carrying on a business, either alone or in partnership, you may have income from more than one source. For example, you may have income both from your business and from salary or wages.

If you make a net loss in a business activity you may, under certain circumstances, claim that loss by offsetting it against your income from other sources.

To determine whether you can offset the losses you must determine whether you are entitled to do so under the non-commercial losses measure.

These examples provide practical guidance on how to complete the non-commercial losses sections of the 2003 Individual tax return in a variety of situations.

You will also require a copy of the 2003 Business and professional items schedule (BPI) and the 2003 Taxpack Supplement (Supp) to complete non-commercial loss details.

Completing non-commercial losses labels in the 2003 Individual tax return

Introduction

Sole trader commences business activity in 2003

Partnership commences business activity in 2003

Sole trader with a deferred loss from a prior year

Partnership where current year loss to be deferred, and deferred loss from 2002

Activities: Partnership with a deferred loss and sole trader with a deferred loss passes a test

Activities: Rental property partnership loss and sole trader with the Commissioner's discretion

Two partnerships - one has a loss and the other has a profit, resulting in an overall profit

Partnership with deferred prior year losses from 2 dissimilar activities, 1 not in the current year

Partnership with a deferred prior year loss and personal business expenses outside the partnership

Primary producer who falls within the exception

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