Item P9 - Business loss activity details
See Item P9 - Business loss activity details on the ATO website.
For ATO information on item P9 click the above link. You may then need to expand the list in the left-hand panel, and click the link to P9.
In Tax the all fields relative to Business Loss Activity Details for 3 Activity items are contained in P9 Business loss activity schedule bla. To open the schedule bla, select Y at the question Enter business loss activity details (schedule bla) and press [Enter].
| Label | Description |
|---|---|
| Label E - Industry Code | Select from the list the Industry to which the business relates. |
| Label D - Description of activity | This describes the business activity from which you made the largest loss. If your business activity is the result of an investment in a tax effective arrangement, print the product ruling number (if any) and the name of the project at label D. Given that the number of characters provided for the description at this item is 38, there will be truncation of the ANZSIC code description in instances where it exceeds 38 characters. |
| Label F - Partnership or Sole Trader | This will be either P (loss from a business activity carried on in partnership with others) or S (loss from a business activity carried on as a sole trader), as appropriate. |
| Label G - Type of loss | The code you use will determine whether you can take into account your net loss from the business activity when calculating your taxable income this year. If you use loss code 8, the deferred loss must be entered and item 16 - Deferred non-commercial business losses. |
| Label H - Deferred non-commercial business loss from a prior year | Show the amount of the deferred non-commercial business loss from a prior year for the business activity. |
Label I - Net loss | Show the net loss from the business activity for the current income year. For partners in a partnership this would be the partner’s share of the net loss from the business activity and includes any deferred non-commercial business losses from the prior year claimed at labels X or Y at item 13. This amount would be the total of the deferred loss at the end of the year. For example, if the taxpayer had deferred losses last year of say $5,000 and made a loss in the current year of $4,000, the net Loss at Item P9, Label I would be $9,000. |
| Activities 2 and 3 | If the taxpayer made a loss from more than three business activities, determine whether you need to defer the loss for each additional business activity and then complete the same details for the second and third largest losses (if applicable) as you have done for activity 1. |
CCH References
16-020 Limit on losses from non-commercial business activities
16-880 What is a tax loss?
16-895 Carrying forward prior year losses