🍃 Tax Losses & Fully Expensing Assets 🍃

This great question below about how tax losses can work is from Tax and Super Australia, and may be quite helpful with making decisions in your business. If you need any clarification, or any help or advice with your tax (business or personal), please get in contact with us today!

Q: If an entity is put into tax losses by fully expensing assets, what are the implications of having these losses?

A: If the entity is a corporate tax entity (including a company), the losses may be able to be carried back to as early as the year ended 30 June 2019. A refundable tax offset may be available.If the entity is not a corporate tax entity or is a corporate tax entity and chooses not to carry back losses (or cannot carry back losses), the losses may be carried forward to be taken as a deduction against future income, in usual circumstances.