Private ruling: Non-commercial business losses and grouping similar business activities
Date of advice: 15 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2015

Ruling: Q1: Can you group your partnership and sole trader business activities for the purpose of subsection 35-10(3) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes.

Relevant facts and circumstances: You operate several pharmacies under a partnership arrangement, and another pharmacy as a sole trader. The sole trader business commenced in the 2014-15 financial year, and has been operating at a loss due to construction delays at the premises it was meant to operate in. The net financial position of the pharmacies is profitable for the 2015-16 and 2016-17 financial years.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 35-10(3).