Loss carry back worksheets - lcb & lcc (for 2021 Company returns)

We've created 2 part worksheet to help you with the calculation of the Loss carry back offset in a 2021 company tax return.

• Loss carry back tax offset summary worksheet (lcb): This is a summary worksheet that shows the refundable tax offset amount you can claim.
• Loss carry back tax offset component worksheet (lcc): This is the calculation worksheet, where you enter the tax loss amounts to be carried back.

To access the worksheet:

• At Item 13, select labels A, B, C, G, I, K, L, M, J, S.
• From Preparation > Schedule > Loss carry back summary worksheet (lcb).

You can access the Loss carry back tax offset component worksheet (lcc) from within the Loss carry back tax offset summary worksheet (lcb)

Completing the Loss carry back summary (lcb) worksheet

Make sure to press F6 when closing out of the worksheet. This will refresh and integrate the correct values into the main label in the tax return.

Most of the data in the lcb worksheet comes from the loss carry back component (lcc) worksheet, which can be accessed by clicking the click the black square (

You'll need to complete only certain fields in the lcb summary worksheet:

• Opening NEI: Enter the Net Exempt Income for the income year. This amount will integrate to Item 13I (Net Exempt income 2018 -19) and Item 13J (Net Exempt income 2019 -20) in the main return.
• Tax liability of the income year: Enter the amount of tax liability for the income year. This amount will integrate to Item 13L (Income tax liability for 2018 -19) and Item 13M (Income tax liability for 2018 -19) in the main return.

Completing the Loss carry back component (lcc) worksheet

Make sure to press F6 when closing out of the worksheet. This will refresh and integrate the correct values into the main label in the tax return.

Use the lcb component worksheet to help you calculate the amount of loss carry back offset.

There are 3 components in this worksheet. You cannot complete all 3 components in this worksheet at the same time. We will disable some sections depending on which one you're completing.

1. To open the Loss carry back component worksheet, click the black square (

   

   ).
2. If you have a tax loss in the income year 2019-2020, you can carry it back to tax loss year 2018-2019.
   Complete the first section (Tax loss 2019-20 carried back to 2018-19). The third component will be disabled.
   

   

3. If you have a tax loss in the income year 2020-2021, you can carry it back to tax loss year 2018-2019 and/or 2019-20.
   Complete the second section (Tax loss 2020-21 carried back to 2018-19) or the third component (Tax loss 2020-21 carried back to 2019-20).
   

   

   
   

   

   

   The current year (2020 - 2021) tax return must have a net loss to complete loss carry back from 2020-2021.

4. Enter the details:
   
   1. Amount of tax loss carried back: Enter the amount of loss you want to carry back to the tax loss year
   2. Net exempt income (NEI): Enter the net exempt income for the income year.
   3. Tax loss carried back excluding NEI: This is a calculated field. Amount of tax loss carried back - NEI

   4. Company tax rate in the tax loss year: This field will show 27.5% if you've answered Y at the Base rate entity question on the front cover, and 30% if you've answered N.

      

      Make sure the Base rate entity question is answered in order for the correct company rate % to appear.

   5. Loss carry back tax offset component: This is a calculated field. Tax loss carried back excluding NEI * Company tax rate %
5. Press F6 to close out of the lcc worksheet. The offset calculation is now transferred into the loss carry back (lcb) summary worksheet.
6. Back in the lcb worksheet worksheet, you'll see the amounts in the respective fields.
   Make sure you've completed the following fields for the calculation of the tax offset:
   1. Net Exempt income (NEI)
   2. Tax liability of the income year (from Item 13 L or Item 13 M)
   3. Franking account balance at the end of the tax year.
   
   

   

   
   
   
7. The final tax offset amount will appear at Refundable loss carry back offset. Press F6 to close out of the lcb worksheet. This will then transfer to 13S in the tax return

Don't forget to complete Part A and Part F in the Losses schedule (BP)