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Edited version of your written advice
Authorisation Number: 1012712948577
Ruling
Subject: Non-commercial losses
Question
Do you pass the assessable income test in respect of the non-commercial loss rules such that you can apply your loss against your other income in the 2013-14 financial year?
Answer
Yes
This ruling applies for the following period:
Financial year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You carried on a business.
The business activity operated for a number of months during 20XX.
The business earned approximately $X in income during that period.
Had the business operated for the entire financial year, you estimate that it would have earned more than $20,000 in income.
Your other income is less than $250,000.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 35-30
Reasons for decision
For the 2009-10 and later financial years, Division 35 of the Income Tax Assessment Act 1997 will apply to defer a non-commercial loss from a business activity unless:
• you meet the income requirement and you pass one of the four tests
• the exceptions apply
• the Commissioner exercises his discretion.
In your situation, you satisfy the income requirement and you have passed the assessable income test.
Therefore your business losses are not subject to the deferral rule and you can apply the losses against your other income in the 2013-14 income year.