Click this link to the ATO website for information on Deferred non-commercial business losses.

The Deferred non-commercial business loss worksheet provides:

• Deferred losses from Partnership Activities Label F

• Deferred losses from Sole Trader Activities Label G

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Deferred losses from Partnership Activities Label F

Any partnership non-commercial losses that must be deferred are to be dissected into those relating to Financial investment activities and those related to rental properties.

This dissection box opens from the individual return at Item 16 Label F-Your share of deferred losses from partnership activities .

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Click this link to open the Non-commercial business losses home page on the ATO website.

This part only applies if the taxpayer carried on a business in partnership with others.

If the taxpayer made a net loss from one or more business activities carried on in partnership with others in the current income year, the following questions will need to be considered.

1. Does the net loss from that business activity come within the Exceptions described? If the answer is NO, continue.

2. Does the net loss from that business activity satisfy one of the 4 tests described? If the answer is NO, continue.

3. Has the Australian Taxation Office advised the taxpayer in writing that the Commissioner will exercise his discretion to allow the taxpayer to claim a net loss from that business activity? If the answer is NO, continue.

Step 1: Work out the net loss to be deferred from the business activity that was carried on in partnership with others. If there is a net loss from only one business activity, go to step three.

Step 2: If there is a net loss from more than one business activity that was carried on in partnership with others, add up all the net losses to be deferred.

Step 3: Enter the total of your net losses to be deferred from business activities you carried on in partnership with others.

Step 4: Check that you have included the amount of your deferred non-commercial business losses in working out your Partnership and Trust distribution (Item 13) in the main return; otherwise you will have overstated your taxable income.

Step 5: Keep records of the net losses deferred for all your business activities.

Step 6: Make sure that you have completed Number of business activities (Item P3) and Business loss activity details (Item P9) in the business and professional items schedule.

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Deferred losses from Sole Trader Activities Label G

Any Sole Trader business non-commercial losses that must be deferred are to be dissected into those relating to Financial investment activities and those related to rental properties.

This dissection box opens from the individual return at Item 16 Label G-Deferred Non-commercial business losses for sole traders .

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Click this link to open the Non-commercial business losses home page on the ATO web site.

These questions do not appear on the worksheet but are set out here to assist you in completing this item, either directly or by using the worksheet.

1. Did you make a net loss from a business activity as a sole trader in the current income year? If YES, you made a net loss from more than one business activity as a sole trader: you must answer the questions that follow.

2. Does your net loss from your business activity come within the Exception described? If NO, continue.

3. Does your business activity satisfy one of the 4 tests listed described? If NO, continue.

4. Has the Australian Taxation Office advised you in writing that the Commissioner will exercise his discretion to allow you to claim a net loss in relation to that business activity for the year? If NO, continue.

You have answered YES to question 1 and NO to each of questions 2, 3 and 4. For each of your business activities follow the steps below to complete this item:

Step 1: Work out the net loss to be deferred from your business activity that you carried on as a sole trader. If you have a loss from only one business activity, go to step 3.

Step 2: If you have a net loss from more than one business activity that you carried on as a sole trader, add up all the net losses to be deferred.

Step 3: Enter the total of your net losses to be deferred from business activities as a sole trader (Item 16 Label G) on your tax return or open the Deferred non-commercial business losses worksheet for sole trader.

Step 4: Check that you have included the amount of your deferred non-commercial business losses in working out your Personal Service income (Item 14) and Net income/loss from business (Item 15) on your tax return; otherwise you will have overstated your taxable income.

Step 5: Keep records of the net losses deferred for all your business activities.

Step 6: Make sure that you have completed Number of business activities (Item P3) and Business loss activity details (Item P9) in the business and professional items schedule.

Business Loss Activity Details (Item P9)

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