• 13. Losses

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    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 2009-10 income year, under section 36-15 of the ITAA 1997. The amount at U is the sum of:

    • the fund's tax loss for 2008-09 (this must take into account any net exempt income), and 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 2008-09 income year.

    Use the fund's 2008-09 net exempt income, if any, to reduce the amount of any 2008-09 tax loss first and then any prior year tax losses. If the fund's 2008-09 net exempt income is greater than its 2008-09 losses, you will reduce prior year losses, and the fund's 2008-09 year losses will be nil.

    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 in the CGT schedule, if a schedule is required.

    If the fund is required to complete a Losses schedule 2009, the amount written at UTax 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.

    Last modified: 25 Nov 2009QC 21714