Taxable Income Loss from the Previous Year

Hi Guys & Gals

Just need to clarify couple of questions?

1. Can you claim your previous year Total Taxable Income Loss in the next year tax Return?

2. How long can you continue to claim the Total Taxable Income loss - Is there any time frame limit in term of number of years or can you continue to claim until your Total Taxable Income becomes positive?

Thanks heaps in advance.
 
Hi CrazynWild

1. Yes

2. A long time ago it used to be 7 years. Now, no limit.

As usual, check all this with your accountant.

Cheers, Paul
 
Crazynwild

Lofty is correct however if it is a business and it is your sole income expect to get auditored atleast once in those 7 years. ATO does sometimes ask the question why are you running a business that is making a loss every year

Jezza
 
No limit, but remember a few rules.

You cannot increase a loss in your own name with personal superannuation deductions or charitable donations.
Exempt income will reduce your loss.
Once you have incurred a loss, you must claim it against income in the future until it is claimed in full, you cannot save it for a big income year.
 
I thought you weren't able to carry forward losses unless you were a non resident and the loss must be used in the first income year you become an Australian resident and must be used in one go, any additional losses are then forgone.

The only exception for non residents is Capital losses which can be carried forward and can only be used to offset future capital gains.

Is there something in the tax act that allows income losses to be carried forward?
 
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