Home – New Forums Money matters Confused – how to enter losses for new sole trader in myTax?

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  • #997213
    Kennard
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    Hello ,

    I am very confused, doing my first tax return as sole trader and stuck at how to enter my losses in myTax. If anybody is knowledgeable and willing to help I would be very grateful.

    I started my business in April 2017 and still have my full time job.
    So far my income from this business is $0 but I had my start up expenses $909. When searching on internet I am apparently able to claim my expenses on my tax return.

    When I enter my losses in myTax (section Business/sole trader, partnership and trust income (including loss details) – I am not sure where to enter these losses, if it was entered in correct category. I used ATO application myDeduction and these losses were uploaded in “net- non primary deductions”

    Later when I go to next step – “type of loss” I dont know what category to enter. I had expenses like business registration, business insurance, laptop purchase etc.

    I know I can take this to accountant but I was always doing my returns by myself and believe this is the only question I need to answer to be able to finalise my return.

    Thank you for any help .

    #1210942
    cjtho6
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    You will need to select the bottom one. As you don’t satisfy any of the requirements to offset the loss against other income it will be deferred to the next year.

    When you make a profit from the business you can then use these losses as a deduction.

    Please note that I am not an accountant and this is just my understanding from doing my return myself also.

    #1210943
    Kennard
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    Thanks for your post.

    I thought I was able claim these expenses even if I did not make profit.

    #1210944
    cjtho6
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    You can only claim those losses against other income in certain conditions.
    Those conditions are listed here: https://www.ato.gov.au/Business/Non-commercial-losses/

    With my business I deferred my losses for 2 years until my business turnover reached $20,000, then I was unable to claim it against my day job.

    #1210945
    Precise Tax Solutions
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    cjtho6, post: 251878, member: 77982 wrote:
    You can only claim those losses against other income in certain conditions.
    Those conditions are listed here: https://www.ato.gov.au/Business/Non-commercial-losses/

    With my business I deferred my losses for 2 years until my business turnover reached $20,000, then I was unable to claim it against my day job.

    This is more or less the requirements.

    Cheers

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