Ok so an easy question for someone with multiple sources of income. Just say I have a salary job and making 90k pay 30k taxes with minimal deductions.
If I have another income source say a business renting out a camper trailer that makes only 2k a year but 3k in expenses can I make deductions across my total tax commitments? Or am I limited to the deductions from income generated from the camper trailer ?
Ta
why pay for advice when you can get it free here?
Yeah my accountant hasn’t gotten back to me yet and my partner and I are on each side of the fence :(
Do you have two adjacent properties?
Claim the expenses now and pay it back if the ato says no.
Plus interest and maybe fines
It’s unlikely that people will get fined or pay interest for their first tax return mistake. Just pay when they get the final warning.
Garbage. No free hits at the ATO.
@Some Guy: I've had plenty of freebies with the ATO. It even says at the start of MyTax that they won't ream you for genuine mistakes.
I would suggest that the OP puts his question to the ATO using the chat function and keeps a copy of the transcript. I've done this a few times. The ATO were very helpful.
Look up non commercial losses for a sole trader.
As a business, unless you satisfy a variety of tests (highly unlikely) then your business losses will be carried forward to future years to use against future business income.
Source: I am an accountant.
the general rule says, if you have another source of income (i.e. employment), your sole trading business needs to make at least 20k in this year, to be able to offset the losses.
This is the answer above. Unfortunately you aren't anywhere near that 20k mark yet.
^This
Asked the same question from my accountant and this is exactly the answer I got.
What is the business structure?
you can't mix them.
Business loss is business loss. You have to carry it forward until you can offset it via a business profit in a future year
the ATO screws you at every turn. same way you can't offset personal income using a capital loss (eg loss on sale of shares/income producing asset), you have to carry that forward to offset a future capital gain.
if this were possible, everyone would start a business and buy a 100k merc etc.
In before we get a thread asking for advice because ATO are auditing a tax return where we claimed a business loss as a deduction due to purchase of 100k Merc.
deleted comment.
Did you mean edited comment?
Thanks for all the replies. OZB to the rescue once again.
You would pay nowhere near 30K tax on a 90K salary. The actual amount including 2% Medicare Levy is $21,517.
What did your accountant say when you asked them?