Fill out details for the second and third largest losses (if applicable) in the same way you have done for Activity 1.
Note: If you made a loss from more than three business activities, determine whether you need to defer the loss for each additional business activity. You will need the total amount of your deferred non-commercial business losses to complete item 16 on your tax return (supplementary section).
The following example shows how to fill in P8 and P9 on your schedule and how the amounts link to your tax return (supplementary section).
In 2007 Kieren had to defer his non-commercial business loss of $6,000 from his beef cattle primary production business activity. He also had to defer his non-commercial business loss of $3,000 from his retail business activity. Because he operated the same activities in the 2009 income year he can claim the $6,000 business loss from the beef cattle primary production business activity as a deduction in relation to calculating any net profit or loss from that business activity for this income year; and the $3,000 business loss from the retail non-primary production business activity as a deduction in relation to calculating any net profit or loss from that business activity for this income year. Kieren would show the amount of $6,000 as a deduction at D item P8, and the amount of $3,000 as a deduction at E item P8 and $9,000 at the Totals on his Business and professional items schedule for individuals 2009 (PDF 167KB)This link will download a file.
This year, Kieren made a loss of $4,000 from the beef cattle primary production business. After taking into account his deferred non-commercial primary production business loss of $6,000 from the prior year, he made a net loss of $10,000. He did not satisfy any of the non-commercial business loss criteria that allow a business loss to be used to reduce other income so he must defer the $10,000 net loss this year.
Kieren would show the $6,000 deferred non-commercial business loss from the prior year at H item P9 and the net loss of $10,000 at I item P9 on his Business and professional items schedule for individuals 2009 (PDF 167KB)This link will download a file. As the loss is to be deferred he would show loss code 8 at G item P9 in the Type of loss box. See Type of loss for a description of the loss codes.
This year, Kieren made a loss of $5,000 from the computer repairs non-primary production business. After taking into account his deferred non-commercial non-primary production business loss of $3,000 from the prior year, he made a net loss of $8,000. He did not satisfy any of the non-commercial business loss criteria that allow a business loss to be used to reduce other income so he must defer the $8,000 net loss this year.
Kieren would show the $3,000 deferred non-commercial business loss from the prior year at N item P9 and the net loss of $8,000 at O item P9 on his Business and professional items schedule for individuals 2009 (PDF 167KB)This link will download a file. As the loss is to be deferred he would show loss code 8 at M item P9 in the Type of loss box. See Type of loss for a description of the loss codes.
Kieren would also need to complete G, I and J item 16 on his tax return (supplementary section), deferring his net losses of $10,000 from primary production and $8,000 from non-primary production, a total deferred net loss of $18,000. He would not be able to use this net loss to reduce his other income this year.