Able to defer deductibles to the next year?

[s050399b]

Hiya,

Is it possible to defer deductibles to the next year?

Too much deductibles in this year, doesn't make sense to push down the effective tax rate from 10% to 5%!!

Are we able to "withhold deductibles" for this year, and report it to the next year?

 

[jrc]

Not if you've paid the expense

 

[s050399b]

Not if you've paid the expense

Oh! So IP investing is a bit different to shares investing; was told by a friend where his shares lost money and he can put it off and deduct it further down the track.

Thanks,

 

[Terryw]

Oh! So IP investing is a bit different to shares investing; was told by a friend where his shares lost money and he can put it off and deduct it further down the track.

Thanks,

Not sure what your friend would mean by this. There are not many expenses associated with shares - virtually only interest on margin loans and this wouldn't be deferrable.

If he is talking about capital losses, then the loss is incurred when the shares are sold.

 

[tgarthe]

yeah pretty sure we are talking about carried forward capital losses.

 

[Terryw]

yeah pretty sure we are talking about carried forward capital losses.

In that case, this would apply to property too.

 

[s050399b]

yeah pretty sure we are talking about carried forward capital losses.

oh! so its only capital loses, thanks guys!

 

[Rob G.]

No you cannot defer applying your capital losses either. They must be used against capital gains when available.

If you find you missed a deduction from a prior year, you need to amend the previous assessment, if you are not out of time.

Cheers,

Rob

 

[monalisa]

No you cannot defer applying your capital losses either. They must be used against capital gains when available.

If you find you missed a deduction from a prior year, you need to amend the previous assessment, if you are not out of time.

Cheers,

Rob

I guess amending would really be dependent on materiality. I'd be inclined to deduct where its small numbers.

 

[s050399b]

Okay, I guess the only valid situations for deferring the losses to the next year are like if your IP expenses are more than your rent + salary for that year?

 

[Rob G.]

I guess amending would really be dependent on materiality. I'd be inclined to deduct where its small numbers.

Nothing to do with materiality, that is an accounting concept. You make $1 of interest on a $1m account balance then you declare it.

Unless a contrary intention is given in the legislation (e.g. some specific deductions) then you cannot deduct an expense you did not incur.

If you didn't incur the expense that year then you don't deduct it.

This thread should discuss more about the incurring of an expense ... that is the real issue.

Cheers,

Rob

 

[s050399b]

This thread should discuss more about the incurring of an expense ... that is the real issue.

Thanks! How about if expenses is more than cash-in for that year? surely we could move it to the next year?

 

[Gools]

Wouldn't you just spend a minute on the ATO website to find your answer?

The overall taxation result of a negatively geared property is that a net rental loss arises. In this case, you may be able to claim a deduction for the full amount of rental expenses against your rental and other income - such as salary, wages or business income - when you complete your tax return for the relevant income year. Where the other income is not sufficient to absorb the loss it is carried forward to the next tax year.

 

[s050399b]

Wouldn't you just spend a minute on the ATO website to find your answer?

opps! blushed!!

Haven't have a look at ATO etax, not sure if there's a seperate column for "carry forward loses"............don't flame me...........

*runs and hide*