When preparing an individual income tax return, it can be perplexing to determine the source of the Adjusted Taxable Income (ATI) amount.
Note that, ATI consists not only from taxable income.
Reference, ATI calculator on ATO site https://www.ato.gov.au/calculators-and-tools/income-tests-calculator/
TABLE OF CONTENTS
- Example A: Interest, Dividends, and Trust Distribution
- Example B: Net income from Business
- Example C: Net Rental Property Loss calculation
- "Estimated total income" and "Estimated total"
Example A: Interest, Dividends, and Trust Distribution
This person only has interest, dividends and trust distribution – taxable income = $172,357
Adjusted taxable income is showing as $622,874,
Example B: Net income from Business
Adjusted taxable income" is the "Net income from business this year"
This is how it computes -
Total Business Income (-) Total Business Expenses = Net Income from Business this year
In this example:
728,707 (-) 660,555 = 68,152
Example C: Net Rental Property Loss calculation
Question: I noticed the ATI didn't take off the rental loss
Gross Wage $104657+
interest $251 less
Deduction: $2586
=$102322 ATI
The software didn't include rental loss of $11552
"Estimated total income" and "Estimated total"
Estimated total income is the gross income from all sources less certain deductions, such as expenses, allowances and reliefs. If you are married or in a civil partnership and jointly assessed, your spouse's or civil partner's income is included in total income.
Estimated total is the sum of all the received income from the following:
