Before you claim a tax loss for your business, you need to make sure that you have correctly claimed the expenses that you are entitled to. If you overclaim expenses, your business can be put into an incorrect tax loss situation, which can make things complicated.
Generally, a business can make a tax loss when the amount spent on expenses outweighs the income.
If you make a tax loss, you may be able to:
Before you claim a tax loss, check that you’ve correctly:
You also do not want to forget that:
If you are a sole trader or an individual partner in a partnership (who meet certain conditions), you may be able to offset current year losses
If you’re an eligible corporate entity (company, corporate limited partnership or public trading trust), you may be able to claim the loss carry-back tax offset. You can check your eligibility for this tax offset using the ATO’s loss carry-back offset tool, or by consulting with us.
Remember, registered tax and BAS agents like us are equipped to help you with your tax concerns as we approach the best time of year to start planning the next year for your business.