Non-commercial losses: exception for primary producers and professional arts businesses
An exception to the non-commercial loss rules allows net losses from certain primary production or professional arts business activities to be claimed in the year the loss was incurred.
If you have a loss from a primary production or professional arts business activity and your assessable income from sources not related to that particular business activity is less than $40,000 in an income year, you can claim your loss in that income year. The $40,000 excludes any net capital gains.
Where you have an effective salary sacrifice arrangement in place, your assessable income from your employment will be the salary amount calculated according to that arrangement for the exception. It will not include any non-cash fringe benefits that may form part of your overall remuneration package.
Note: You do not need to meet the $250,000 income requirement to claim your losses under this exception.
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