U Tax losses carried forward to later income years
Show at U the total tax losses incurred by the fund that are to be carried forward to the 2013–14 income year, under section 36-15 of the ITAA 1997. The amount at U is the sum of:
- the fund’s tax loss for 2012–13 (this must take into account any net exempt income)
- the fund’s prior year tax losses (including the foreign loss component of those tax losses).
Include prior year tax losses only to the extent that they have not previously been deducted or reduced by net exempt income in the 2012–13 income year.
Use the fund’s 2012–13 net exempt income, if any, to reduce the amount of any 2012–13 tax loss first and then any prior year tax losses. If the fund’s 2012–13 net exempt income is greater than its 2012–13 losses, you will reduce prior year losses, and the fund’s 2012–13 year losses will be nil. The meaning of ‘net exempt income’ is explained at M Tax losses deducted, item 11.
Do not include any net capital losses to be carried forward to later income years at U; show these at V Net capital losses carried forward to later income years and Item 3 in the CGT schedule, if a schedule is required.
If the fund is required to complete a Losses schedule 2013, the amount shown at U Tax losses carried forward to later income years item 1 in part A of that schedule must be the same as the amount shown at U on the tax return.
Do not include an amount of quarantined losses in respect of non-arm’s length income at U. You should keep a record of the quarantined loss amount with the fund’s tax record.