My husband and I recently had a business which only lasted 18 months (wrong timing). We have poured alot of money into this business and find it hard to believe we will not receive anything back tax wise. We are not really sure how this works. Can somebody please explain this to me like i'm a 2 year old. Is he able to claim anything back through his personal tax?
I am but a simple lawyer so I can't give tax advice, you need to talk to an accountant. The question of what you can claim back with the business is really an area where you need to talk to an expert and in this case an accountant. I would be cautious about taking advice from someone who isn't an accountant because you don't want to get tax issues wrong because then you do need to talk to a lawyer. :)
I had a business under a family trust structure which lost a significant amount of money over 10 years ago. Whilst I worked PAYG, that income was unrelated to the company and trust and I could not claim any deductions or offset losses from the business. When I started up a new business trading in the company name, I was then able to offset profit earned against prior tax losses. Capital losses are different again and can only be offset against future capital gains of the company.
If you plan to try again in business, it can be worth maintaining the ongoing company accounts each year to carry forward your losses to be used in later years. This is definitely a discussion that you and your husband need to have with your accountant as it will cost around $1500-$2500 per year.
Best of luck