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Edited version of your written advice
Authorisation Number: 105137243469
Date of advice: 11 May 2018
Ruling
Subject: Non-commercial loses relating to the growing of avocados.
Question
Will the Commissioner exercise the discretion in subparagraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include losses from your business activity of avocado farming in the calculation of your taxable income for 20XX-20XX income 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. Consequently the Commissioner will exercise his discretion in the 20XX-20XX financial year.
This ruling applies for the following period:
Period ending 30 June 20XX
The scheme commences on:
XX XX 20XX
Relevant facts and circumstances
You do not satisfy the income requirement set out in subsection 35-10(2E) ITAA 1997.
You purchased a XXX acre avocado farm with XXX avocado trees.
Your business activity of growing avocados commenced on XX XX 20XX.
You have provided an estimate indicating that the farm will make a profit in the 20XX-20XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 paragraph 35-55(1)(c)