Debbie Slater
Perth, WA
--- Begin Message --- OK - so I sat down to do my tax return today - aargh
As you may know, Melanie and I have gone into partnership to provide CBE classes. So far we haven't made a dime and have actually made a loss. However, because we have just started and don't satisfy certain tests as to sustainable profitability, assets, etc. we have to defer the tax deductibility of this loss unless we apply for a ruling from the tax commissioner.
So what I need to provide is certain information:
1. In our industry, what is the accepted number of years before an activity becomes commercially viable?
Any ideas anyone. I have no idea for Australia. In the UK, we would expect to probably be at least making some inroads, but here it is another matter. I need to provide evidence from independent sources for my answer - so any help would be appreciated.
2. What is the inherent or innate feature of the activity that has meant that there is a period of time from when it commenced to when it meets one of the tests (in this case being profitable in 3 of the last 5 years)?
I can give an answer to this - small client base, need to build up reputation etc., but, again, I need to provide independent evidence, so can anybody help?
Generally - how have the rest of you CBE's dealt with this?
Many thanks
Debbie Slater
Perth, WA --- End Message ---
