Total Net Investment Losses for family assistance and Paid Parental Leave scheme payments 007-07080040

Tony expects to make a net loss of $3,000 on an owned rental property, but expects to have net income of $1,000 from his financial investments.

As there are 2 different investment types, rental property and financial investments, Tony cannot use the net income from the financial investment to reduce the rental property loss and must record the full $3,000 as net investment loss. Tony must also include the investment income of $1,000 into the related taxable income calculation.

Jill expects to make a net loss of $2,000 on one rental property, but expects to have net income of $500 from 1 other rental property.

As Jill has 2 investments of the same investment type, the income of $500 can be used to offset the $2,000 loss, reducing the total rental property loss to $1,500, which must be recorded as net investment loss.

Doug expects to make a net loss of $4,000 on 2 of 3 owned rental properties and net income of $1,200 on the third. Doug also has financial investments which are expected to have net income of $2,000.

Doug can only reduce the rental property loss of $4,000 with the net income of $1,200 from the third rental property, totalling a net rental property loss of $2,800.

He cannot use the net income of $2,000 from financial investments to offset the property loss, as this is a different investment type.

Doug must include the $2,000 net income from financial investments in the related taxable income calculation and include the $2,800 loss in the net investment loss component when updating the income estimate.