Private ruling: Commissioner's discretion - non-commercial losses
Date of advice: 23 October 2021
Published: January 2022
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your income producing activity in your calculation of taxable income for the 20XX-XX income year? | A1: Yes Having considered your circumstances and the relevant factors the Commissioner has granted the discretion. It is accepted that your income producing activity was affected by special circumstances outside your control which caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on an income producing activity. Your income producing activity commenced on 1 August 20XX. You were affected by special circumstances in the 20XX-XX income year. But for the special circumstances the business would have made a profit.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 35-10(1) | Income Tax Assessment Act 1997 subsection 35-10(2) | Income Tax Assessment Act 1997 subsection 35-10(2E) | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)