Case: How to defer losses when operating two business activities under a single ABN—where one activity is profitable and the other has a loss that needs to be deferred.
Guide:
To defer a loss when managing two business activities under one ABN, where one business is profitable and the other incurs a loss that must be deferred,
Access the Business Section
1. Navigate to the "Business" section in LodgeiT.
2. If you are unable to locate the section, click the menu icon (four small squares) in the top-right corner of the navigation bar to activate the Business section.
Activate Business Section
2. Input the deferred loss amount for the business showing a loss:
- Enter the loss amount in the "Non-primary production deferred losses" field (e.g., $33,000).
- Ensure the deferred loss is correctly allocated between "Primary production deferred losses" and "Non-primary production deferred losses."
Related guide: How to use Deferred Business Losses
2. If you are unable to locate the section, click the menu icon (four small squares) in the top-right corner of the navigation bar to activate the Business section.
Activate Business Section
Confirm Multiple Businesses
1. In the Business section, confirm that you are running multiple businesses by clicking "YES" when prompted with the question: "Do you run multiple businesses?"
2. This will display the business worksheets for each activity.
1. In the Business section, confirm that you are running multiple businesses by clicking "YES" when prompted with the question: "Do you run multiple businesses?"
2. This will display the business worksheets for each activity.
Review Business Worksheets
The system will show a table listing your businesses, including their income/loss amounts.
- Example: Business A (Profit: $18,000) and Business B (Loss: -$33,000).
- LodgeiT does not automatically handle financial statements or depreciation across multiple worksheets, so manual data entry is required.
- Example: Business A (Profit: $18,000) and Business B (Loss: -$33,000).
- LodgeiT does not automatically handle financial statements or depreciation across multiple worksheets, so manual data entry is required.
Manage Deferred Losses
1. Navigate to the "Deferred Losses" section under the Business tab.Deferred Losses Section
1. Navigate to the "Deferred Losses" section under the Business tab.Deferred Losses Section
- Enter the loss amount in the "Non-primary production deferred losses" field (e.g., $33,000).
- Ensure the deferred loss is correctly allocated between "Primary production deferred losses" and "Non-primary production deferred losses."
Record Business Loss Activity Details
- Navigate to the "Business Loss Activity Details" tab under the Business section.
- Input the deferred loss amount (e.g., $33,000) under the appropriate fields:
- Use the field labeled "Net Loss" (Item I) to record the deferred loss.
Verify Entries
- Ensure that the deferred loss does not impact the taxable income for the current year.
- Double-check all entries for accuracy and confirm that the form is valid (a green validation message will appear).