The ATO will only allow you to offset your trading loss against assessable income from other sources if:
you earn less than $250,000 and satisfy one of the four non-commercial losses tests below (profits test, assessable income test, other assets test, real property test); or
the Commissioner of Taxation uses his discretion to allow you to claim the loss (this rarely happens).
The non-commercial losses limit the ability of taxpayers to offset business losses against other assessment income unless one or more of the following tests are met:
assessable income generated by the business is at least $20,000 (assessable income test);
the business shows a profit for at least three out of the last five years (profits test);
the business has property or an interest in real property with at least $500,000 on a continuing basis (real property test); or
the business has at least $100,000 of other assets being used on a continuing basis (other assets test).
LWP Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
