IITR.100031 -- The income requirement for non-commercial losses has not been met.
For a resident taxpayer, where the sum of taxable income or loss and the net loss amounts that exceeds or equal to zero, the reported income for the purposes of the non-commercial losses income test is equal to $250,000 or more. Ensure loss codes used and/or amounts reported at the relevant labels are correct. A copy of the formula used to calculate income for this test can be found at www.ato.gov.au/nc.
Note: The following information is of a general nature. Please contact the ATO for advice specific to your client's circumstances.
To first be eligible, the sum of all four elements must be less than 250k. For element one, taxable income is not the calculated taxable income on the form as the calculation requires the adding back of business losses.
Element 1.
Your taxable income is your assessable income less your allowable deductions for an income year. For the purposes of the income requirement, any assessable:
business losses are added back to your taxable income if they were already included in the calculation of your taxable income
assessable FHSS released amount is subtracted from your taxable income if it was already included in the calculation of your taxable income.
Element 2.
Reportable Fringe benefits
Element 3.
Reportable Employer superannuation contributions
Element 4.
Your total net investment loss is the sum of your net investment losses from the following two types of investments:
rental property investments, such as negatively geared rental properties (IT6)
financial investments, such as negatively geared share portfolios.(IT5)
Add the total from each element 1, 2, 3, and 4 together to find if your client meets the income requirement to offset the loss. If the total exceeds 250,000 then your client is not eligible and the error IITR.100031 will appear as per the ATO SBR specification.
Please contact the ATO for further information on the error or refer to the ATO website: The income requirement | Australian Taxation Office (ato.gov.au)