Continuing trades
In this lesson, you'll learn how to relieve trade losses for sole traders and partnerships, a crucial skill for handling business losses in your income tax computations.
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In this lesson
- 0:00 Trade losses: Overview and relief options
- 0:35 How trade losses work in continuous trades
- 1:18 Current year claim against total income
- 1:45 Carry back claim to prior year
- 1:59 Using trade losses against capital gains
- 6:01 Carry forward relief for future profits
- 6:39 Summary of four loss relief methods
About this lesson
You'll explore four key relief methods: claiming against total income in the current or prior year, offsetting against capital gains, and carrying losses forward to future trading profits. The video walks you through the mechanics of each relief option, including timing requirements, all-or-nothing claims, and how to structure your income tax pro forma correctly. By the end, you'll understand when and how to apply each relief strategy and be ready to tackle trade loss questions in your TX or ATX exams with confidence.
Duration: 7m
Transcript
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