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Edited version of your written advice
Authorisation Number: 1051371638124
Date of advice: 16 May 2018
Ruling
Subject: Non-commercial losses
Question
Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 to allow you to include any losses from your business activity in your calculation of taxable income for the 2016-17 financial year?
Answer
Yes
Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry.
Therefore, the Commissioner will exercise the discretion in the 2016-17 financial year.
For more information on non-commercial losses, please visit our website at https://www.ato.gov.au/Business/Non-commercial-losses/, or search quick code QC 33774 at www.ato.gov.au.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts and circumstances
Your income for non-commercial loss purposes for the 201X-1Y financial year is more than $xxx.
You are carrying on a business which commenced in mth/201X.
You plan on growing the business as well as leasing a second property.
You have provided your projected profit and loss statements indicating that the activity will be profitable from the 201X-1Y financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 35-10(1)
Income Tax Assessment Act 1997 subsection 35-10(2)
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 paragraph 35-55(1)(c)