Non-commercial losses and special circumstances

For the Commissioner of Taxation to apply his discretion and allow a taxpayer to claim a business loss against assessable income there needs to be “special circumstances”.

A recent private binding ruling reflects an important view from the Commissioner about what does and what does not constitute special circumstances.

In particular, a taxpayer may be able to obtain a special circumstances ruling in times where they are over the $250,000 income threshold. In the private ruling, the taxpayer was not granted special circumstances.

Posted in Tax Updates.