U Tax losses carried forward to later income years
Write at U the total tax losses incurred by the fund that are to be carried forward to the 2008-09 income year, under section 36-15 of the ITAA 1997. The amount at U is the sum of:
- the fund's tax losses for 2007-08 less the fund's net exempt income for 2007-08, and
- the fund's prior year tax loss.
Use the fund's 2007-08 net exempt income, if any, to reduce the current year tax losses first and then any prior year tax loss. If the fund's 2007-08 net exempt income is greater than its 2007-08 losses, you will reduce prior year losses, and the fund's 2007-08 year losses will be nil.
Do not include any net capital losses to be carried forward to later income years at U - include these at V Net capital losses carried forward to later income years and in the CGT schedule, if a schedule is required.
If the fund is required to complete a Losses schedule 2008, the amount written 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.
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.