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Edited version of private advice
Authorisation Number: 1051932238746
Date of advice: 13 December 2021
Ruling
Subject: Non-commercial losses - assessable income test
Question
Do you satisfy the assessable income test set out in section 35-50 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Having considered your circumstances and the relevant facts, it would be reasonable to estimate that had you carried on the business activity for the full year, you would have achieved income greater than $20,000.
Therefore, you are considered to have met the assessable income test and will be able to include any losses from your business activity in the calculation of your taxable income for the 20XX-20XX financial year.
Further information on non-commercial losses can be found by searching QC 33774 on ato.gv.au.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You were in business for less than a year.
You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
Your income was $X.
You estimate that your income would have been $X had you carried on the business activity for the full year.
Relevant legislative provisions
Income Tax Assessment Act 1997 Division 35
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 section 35-50