Foreign Business Losses That Are Not Exempt Form Income Tax

The non-commercial loss system also applies to a business loss from a foreign source.

To calculate your business loss, you will require combining all income and deductions from both foreign and Australian sources that are attributable to the same or linked business activity.

If you can claim your business loss because of the non-commercial loss rules, there is no limit on whether you can maintain it against foreign or Australian components of your income.

If you can’t deduct your business loss because of the non-commercial loss rules, you will need to defer your loss for use in a later year.

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