Which one of the following statements best describes the treatment under section 8-1 ITAA97 of expenses incurred before the business has started?

Question

Quizplus · Accepted Answer

Under section 8-1 of the Income Tax Assessment Act 1997 (ITAA97), for an expense to be deductible, it generally needs to be incurred in gaining or producing assessable income. Expenses incurred before a business has actually commenced typically do not meet this criterion, as the business is not yet generating assessable income. Therefore, such pre-business expenses are not deductible under section 8-1 ITAA97.

Which One of the Following Statements Best Describes the Treatment