Is Your Business Operating at a Loss?
General speaking, when revenues are less than expenses in an accounting period, your business is running at a loss. It is not uncommon for businesses to experience these losses, especially during their first years of operation. Expenditure for setting up and operating during this early period can often be quite larger than your revenue. If this is the case, it is best to seek expert financial advice on your small business loss Canberra, and learn how you can decrease your liabilities.
When it comes to small business loss Canberra, not all may be lost. At MAS Tax Accountants Canberra, we can provide you with the best tax knowledge to make the most gain from your loss. Through our years of experience, we have assisted a number of business entities in the Canberra area. Working with Sole Traders, Small Businesses, Partnerships and Companies to prepare their tax returns and minimise their tax liabilities using their business losses.
Lodging Tax Returns for Businesses Running at a Loss
It is important to understand the different types of losses. Some losses can be immediately offset against your other income depending on the type of loss and business structure you are operating under. In the case of Sole Trader or Partnership losses, where there is a minimum $20,000 in assessable income, the losses can be offset against other income streams such as a salary income. However, this is conditional on the basis that the business passes the assessable income test requirements.
If have non-commercial losses, which cannot be offset against your income from the same year, don’t panic. At MAS Tax Accountants Canberra, we will help you to defer your losses to the next year. This can be great in reducing your tax liabilities, if you are expecting your business to pick up and make more profits in the future.
The ATO use three primary tests:
- Profits: where the business has produced a profit in at least three out of the last five tax years
- Real Property: Such as commercial real estate, used in carrying on the business is at least $500,000
- Other Assets: the value of other assets (excluding motor vehicles) used in carrying on the business is at least $100,000.
More information about non-commercial losses can be found on ATO website.
At MAS Tax Accountants Canberra, we provide you with our valuable tax expertise and up-to-date knowledge on tax laws, to help you get the most from your business losses. We will work closely with you and used reliable business data to assess your current position and opportunities. We will determine if your business losses are eligible to be offset against your income in current year, and proceed further with tax return lodgement within the ATO deadlines.
Being recognised as one of the Top Ten Tax Agents in Canberra, we are committed to bringing you the best services, in a timely and cost-effective manner. Our professional and friendly team can help you to carry forward these losses, even if you have had deferred losses from a few previous years.
Finding the Right Small Business Loss Canberra Services
At MAS Tax Accountants Canberra, we provide flexible appointment options, making it easily for you to manage your small business loss needs with your busy lifestyle. We offer after-hour appointments and can also visit you at your office. We can communicate with you via phone calls and e-mails for your convenience.
Learn more about our Canberra office and the full list of services that we provide.
For more information or to make an appointment, please contact us below or call us on 1300 627 829
