Q1 Lucy carries on a primary production business. She made a loss from her primary production business. She earned $30,000 wages in the income year and she has no other source of income. She _____ use losses from her primary production business to offset her other income in that income year.

Select one:

a. can

c. may not

d. must not

Q2 Graham, a resident taxpayer, conducts a part time business as a personal trainer. He is also employed as an accountant. For the 2018 financial year, his adjusted taxable income is $100,000 and his assessable income from personal training activities is $25,000. For the 2018 financial year, he ___ use losses from his personal training businesses against other income.

Select one:

b. can

c. may not

d. must not

Q3 Graham, a resident taxpayer, conducts a part time business as a personal trainer. He is also employed as an accountant. For the 2018 financial year, his adjusted taxable income is $100,000 and he made a profit from his personal training business in 2014, 2015 and 2016. He made a loss from his business in the 2018 financial year. For the 2018 financial year, he ___ use losses from his personal training businesses against other income.

Select one:

b. must not

c. can

d. may not

Q4 Jason has assessable income of $15,000, related deductions of $500 and has made a $20,000 donation to Oxfam. Jason's taxable income for the year should be ____ .

Select one:

a. $15,000

b. ($5,500)

d. Nil

Q5 A tax loss is incurred when the taxpayers deductions, other than carried forward tax losses, exceed the sum of:

Select one:

a. ordinary income

b. all the answers are correct

c. statutory income

Q6 The non-commercial loss rules apply to ______.

Select one:

b. trusts

c. companies

d. individuals