So I recently found out im a primary producer within a trust since 2007 where it has significant losses ie. Tax credits. I am a beneficiary so I count.
How do I go amended my returns to claim my 30k of tax for the past 7 years? what cam I claim? And will I get interest on top?
See an accountant.
I'm not one so don't take my words as financial advice, law, lyrics or gospel.
Depending on your earnings, you may not be able to offset the entire losses over the last 7 years, so the residual value of loss will carry forward and remain as an offset into future years until it's fully absorbed.
Your taxable incomes for the relevant years will be reduced by as much as can can be offset, and so your tax should be adjusted accordingly. At worst, this might mean zero change, otherwise you should be refunded, with interest. This will likely also depend on which years the farm made a loss and how much loss was made for each of those individual years. You may even discover some undeclared profits from good years. Just bring every single bit of information you can to the accountant.
Then again, there may be entirely different rules for trusts that change everything.
THank you!
Well i got about 150k of tax taken out and our company has about 2-3 million dollars of tax credits. The company hasn't paid any tax in 10 years lol….. is it possible to offset it 100%
thank you for the information, it will help me tomorrow when i start calling around :)
https://www.ato.gov.au/Business/Primary-producers/Primary-pr…
"Primary production activities
A primary producer is an individual, trust or company carrying on a primary production business. You are a primary producer if you carry on a business of:
plant or animal cultivation (or both)
fishing or pearling (or both)
tree farming or felling (or both).
Special rules apply if you are the beneficiary of a primary production trust that has made a loss."
followed by:
"Beneficiaries of primary production trusts
If you are the beneficiary of a primary production trust that has made a loss, you are in a business of primary production only if either:
the trustee has nominated you as a chosen beneficiary
you are the beneficiary of a fixed trust."
a bit more googling…
http://guides.dss.gov.au/guide-social-security-law/4/7/4/30
"If a trust's main business activity is primary production (1.1.P.389) and the person is a beneficiary of the trust, their interest in the assets and liabilities of the trust are their primary production assets and liabilities.
"
150k tax!? If you mean personal income tax, damn… you're doing something right.
At that rate, you'll probably chew through every bit of that 30k offset by the max possible amount for each of the 7 years. I wouldn't mind a tax return the size of what you're in for.
yes 150k over the seven years :) this also opens me up for other opportunities as in low interest 1-2% interest loans for agriculture… got some plans up my sleeve :) since agriculture is the next industry that will propel this nation forward since mining is starting to dwindle :)
@frysie:
Oh I thought you meant 150k tax for 1 year haha. So after that revision, you may not use your offset yet up after all. Anyway, I don't want to be like some financial rollercoaster of hope playing on your mind, so I'll shut up about what you might get back.
I've worked alongside agriculture for a while now, you with your talk of plans reminds me of one of the farmers I met. Good luck with your projects.
Usually losses are trapped inside trust until a profit is made, best see your accountant for advice as they'll know your situation best.
Probably try the ATO and an accountant.
Pretty hard for anyone here to provide you with a reasonable response given the level of detail.