My company made a loss last year. This year a profit for the year was made, but not enough to offset the the previous years loss. In the current company tax return do I include the previous losses in 7R (Tax Losses Deducted)? and do I put zero in 7T (Taxable/net income or loss)?
ie
Loss for 2016 was 46000
Profit for 2017 was 33000
I understand that 13U will include all losses carried forward.
So for the current years company tax return I would make the following entries?
7R (Tax Losses Deducted)=46000
7T (Taxable/net income or loss)=0 or 33000?
13U (Tax Losses carried forward)=13000 (less than 100k, so no Losses Schedule?)
Regards

Hi John,

OK do not hold me to this because it has been a few years for me doing these personally.

As I understand it yes 7T has the profit for the year.

You then deduct the tax losses deducted in Section R in our software it follows directly through.

Don't forget to complete the losses schedule for the future carried forward losses.

Ok hope I am right on this one. Pretty sure I am. I'll check with the staff tomorrow and confirm.

Thanks

AJ

OK again i need to check tomorrow.

7T = 33,000 profit

plus or minus non-deductible expenses like superannuation for accounting purposes you would have taken a deduction BUT for the tax, you can only deduct what you actually pay.

Lets assume you have non reconciling items.

OK the in 7 R losses deducted = 33, 000

then your taxable income is 0

and you losses schedule should have a carried forward of 13,000

Sorry let me just check you said losses for 2015 were $46k is this brought forward losses or Just 2015 losses.

So if there were more carried forward losses then these would be included in your losses schedule.

Make sense?

AJ

Hey John,

Got me there. Let me have a quick look.

Ok have a look at this and see if you tick any of the boxes.

Generally, under $100k you will be ok but please double check.

AJ