Sapo is both a doctor and a partner in Health Well medical practice. He receives $100,000 income from the medical practice in the current financial year.
For the past four years, Sapo has also made leather sandals for sale at his local market He has not yet made a profit from selling the sandals. In the current financial year Sapo has sold $15,000 worth of sandals but incurred expenses totalling $17,500. Sapo wishes to offset the $2,500 loss against his income from Health Well.
Required B:
Advise Sapo whether he can offset the loss.
In your response give reasons and refer to sections of legislation and cases, where relevant.
Get Answers For Free
Most questions answered within 1 hours.