Broad Current-Year Offset
In the year the loss occurs, a business loss can be offset against all types of income – salary, rental, investment, and capital gains. This makes the first year of a business loss particularly valuable for tax planning.
Restricted Carry Forward
In subsequent years, the loss can only be offset against income from the same business or a similar trade/profession. It cannot be offset against salary or passive income in future years.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.