Item L1 - Tax losses of earlier income years

Click this link to open the information on Item L1 Tax losses of earlier income years on the ATO website.

Do you have any tax losses of earlier income years?

Complete this item if you have a tax loss from an earlier income year which you have not claimed as a deduction.

You may have a tax loss at item L1 this year which you may be able to claim as a deduction. You must complete this item even if you are unable to claim a deduction for the loss this year.

To complete this item on your tax return you will need records of your tax losses from earlier income years.

Click any of the labels Q, F, R or Z at L1 to record prior year losses in the Prior year losses worksheet (pyl). If losses are claimed this year, the amounts claimed will integrated to the relevant return labels; losses to carry forward will be calculated at year end and any balance remaining in each of the years will be pre-populated at that time. Losses deducted are used in the order in which they were incurred. Refer to Prior year losses worksheet (pyl).

Do NOT include:

• Capital losses

• Expenses and losses incurred in earning foreign income

• Deferred non-commercial business losses from a prior year.

CCH References

16-880 What is a loss?

16-895 Carrying forward prior year losses