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  • 24 Total of items 20 to 23

    Show at item 24 the total of the amounts shown at items 20 to 23.

    If this amount is a net loss, print L in the box at the right of the amount. Do not include prior year losses here.

    If the amount shown at item 24 for a trust is a net income amount and the trust is able to deduct the whole or part of prior year losses in 2017–18 under section 36-15 of the ITAA 1997, show the amount of prior year losses to be deducted at item 25 Tax losses deducted.

    25 Tax losses deducted

    Show at C tax losses from earlier income years, which are deductible in 2017–18 under section 36-15 of the ITAA 1997.

    Exclude the film component of any tax loss (film loss). A film loss is shown, to the extent permissible, at item 18 Other deductions.

    Do not show current year foreign losses here. They are included at item 23 Other assessable foreign source income.

    Complete a losses schedule if the trust:

    • is a listed widely held trust (as defined in Schedule 2F to the ITAA 1936), and
    • is required to pass the same business test in order to claim a deduction for losses in 2017–18, or will be required to pass that test in respect of losses being carried forward to later income years.

    For more information, see Subdivision 269-F of Schedule 2F to the ITAA 1936 and Losses schedule instructions 2018.

    The following information will help you to complete C:

    • The total of any tax losses shown at C cannot exceed the amount of net income shown at item 24 Total of items 20 to 23.
    • Complete item 27 Losses information if the income injection test under the trust loss provisions prevents the trust, including a family trust, from fully claiming a deduction for tax losses of an earlier income year in 2017–18: see Division 270 of Schedule 2F to the ITAA 1936.

    For more information, see Trust loss provisions.

    Beneficiaries with no interest in trust capital

    A life tenant is a beneficiary with an interest in the income of the trust estate for the duration of their life, but with no interest in the capital of the trust.

    If the trust includes a beneficiary who is a life tenant or a beneficiary with no interest in the capital of the trust, you cannot claim a deduction for tax losses of earlier income years in calculating the share of those particular beneficiaries in the net income of the trust if the tax losses of previous years are required to be met out of corpus.

    Example 10

    The XYZ trust has tax losses of earlier income years of $2,000. Its net income is $20,000, excluding losses of earlier income years. There are two presently entitled beneficiaries of the trust, each with a 50% interest in the income of the trust. The trust deed requires tax losses to be met out of corpus.

    One beneficiary is a life tenant. The other has an interest in the income and the capital of the trust.

    In calculating the net income of the trust for the life tenant’s share, no account is taken of earlier year losses. The life tenant’s share of the net income of the trust for tax purposes is 50% of $20,000 which is $10,000.

    Conversely, in calculating the other beneficiary’s share of the net income of the trust, earlier year losses are taken into account. That beneficiary’s share of the net income of the trust for tax purposes is 50% of ($20,000 − $2,000) which is $9,000.

    End of example

    26 Total net income or loss

    The amount shown at item 26 must be equal to the amount shown at item 24 Total of items 20 to 23, less any amount shown at item 25 Tax losses deducted.

    If at item 24 you show a net loss amount, the total shown at item 26 is the same. If at item 24 you show a net income amount, the amount at item 26 cannot be a loss since the total amount you can claim as a deduction at item 25 must not exceed the net income at item 24.

    Print L in the box at the right of the amount, if the amount at item 26 is a loss.

    27 Losses information

    Do not include carried-forward film losses at this item.

    If the total of the trust’s tax losses and net capital losses carried forward to later income years is greater than $100,000, complete a Losses schedule 2018 (NAT 3425) and attach it to the trust tax return.

    Tax losses carried forward to later income years

    Show at U the undeducted amount of tax losses incurred by the trust that can be carried forward to a later income year under section 36-15 of the ITAA 1997. Do not show any net capital losses to be carried forward to later income years at U. Show them separately at V Net capital losses carried forward to later income years and in the CGT schedule, if a schedule is required.

    Net exempt income reduces a current year tax loss. If there is any excess exempt income, then the prior year tax losses will be reduced.

    If the trust is a designated infrastructure project (DIP) entity, ensure the amount of tax losses carried forward to later income years includes any uplift amount.

    Tax losses carried forward may be affected by the commercial debt forgiveness provisions, see Appendix 4.

    If the income injection test in Division 270 of Schedule 2F to the ITAA 1936 prevents the trust from fully claiming a deduction in 2017–18, include the amount that the trust cannot claim in the amount shown at U. Include the full amount of the scheme assessable income within the meaning of Division 270 in the amount of total net income of the trust shown at item 26 Total net income or loss.

    If the trust is required to complete a losses schedule, the amount of the tax losses shown at U in part A of that schedule must be the same as the amount shown at U on the trust tax return.

    Net capital losses carried forward to later income years

    Show at V the total of any unapplied net capital losses from collectables and all other CGT assets and CGT events. This information is calculated or transferred from:

    • 3B in Table 5 and 3A in Table 9 of the CGT summary worksheet in Guide to capital gains tax 2018, or
    • A and B in part 3 of the CGT schedule, if a schedule is required.

    For more information, see Guide to capital gains tax 2018.

    If the trust is required to complete a losses schedule, the amount shown at V Net capital losses carried forward to later income years in part A of that schedule must be the same as the amount shown at V on the trust tax return.

    28 Landcare and water facility tax offset

    You cannot claim the landcare and water facility tax offsets for expenditure incurred after 2000–01.

    Landcare and water facility tax offset brought forward from prior years

    Show at G the total of any landcare and water facility tax offsets carried forward and available to be applied in this income year.

    Last modified: 08 Feb 2019QC 55259