Elias operates a mushroom farm as a sole trader. The activity commenced in the year ended 30 June 2003.
The business records for this activity for the year ended 30 June 2003 show the following results (included in Item P8 of the BPI schedule):
Total business income |
$10,000 |
Total expenses |
$15,000 |
Net income or loss for 2003 |
$5,000/L |
Elias has also earned salary and wage income of $30,000 in the 2003 income year.
As his income from sources not related to the primary production activity is less than $40,000, the Exception in subsection 35-10(4) will apply. Accordingly, he can offset the $5,000 loss against his salary and wage income in the 2003 income year.
Tax return completion
Elias' tax return would include the following details:
Elias will also require a copy of the 2003 Business and Professional Items schedule (BPI) and the 2003 Taxpack supplement (Supp).
Item |
Label |
Amount |
Comment |
P8 (BPI) |
Total business income |
10,000 |
|
Total |
15,000 |
Total expenses |
|
B |
5,000/L |
Total business income less total expenses |
|
D |
nil |
No prior year deferred non-commercial loss |
|
Y |
5,000/L |
Transfer to Item 14 label B |
|
14 (Supp) |
B |
5,000/L |
From item P8 label Y |
P3 (BPI) |
B |
1 |
Number of business activities |
P4 (BPI) |
C2 |
X |
Commenced business |
P9 (BPI) |
Activity 1 |
||
D |
Mushroom Farming |
||
E |
01690 |
ANZSIC code required for tax agent prepared returns |
|
F |
S |
||
G |
7 |
Loss is from a primary production business and other income from sources not related to this activity is less than $40,000 |
|
H |
nil |
No prior year deferred non-commercial loss from this activity |
|
I |
5,000 |
Net loss for 2002-03 for this business activity. |
|
15 (Supp) |
H |
Loss does not need to be deferred. |