Private ruling: Non-commercial loss - business of similar kind
Date of advice: 28 October 2021
Published: January 2022
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are your business activities 'of a similar kind' for the purposes of the non-commercial loss rules in Division 35 of the Income Tax Assessment Act 1997 ? | A1: Yes. After considering the facts and circumstances of your business activities against Taxation Ruling 2001/14 it is considered that your business activities are of a similar kind for the purposes of the non-commercial loss rules in Division 35 of the Income Tax Assessment Act 1997.

Relevant facts and circumstances: You used to operate a business selling electronic and communication equipment. The goods provided were electrical devices, car accessories, parts and components. In 20XX the business ceased with a carry forward loss. You are resuming your business activity from 20XX. The ABN will be reinstated. The goods provided by your business now are electrical devices, car accessories, parts, components and cars. The location of the business, the market conditions, the assets employed, and other characteristics are the same.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35