Private ruling: Non-commercial losses
Date of advice: 30 April 2020
Published: June 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 2018-19 financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which prevented you from passing a test. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You and your ex-spouse operated a business. The business was managed through a partnership with your ex-spouse. Services and facilities were provided. Your ex-spouse was diagnosed with a medical condition several years ago. This has prevented your ex-spouse from operating the business to full capacity being physically unable to run it as had been done previously. There were insufficient funds to employ anyone to do the work. The business has previously met the assessable income test and been profitable. Your relationship has ended. These special circumstances have contributed to this major business downturn. The business is no longer running and was sold. From 20XX to 20XX turnover was below $20,000. Losses have been deferred since then.