Income Tax Assessment Act 1997
CHAPTER 2
-
LIABILITY RULES OF GENERAL APPLICATION
PART 2-5
-
RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS
Division 36
-
Tax losses of earlier income years
Subdivision 36-A
-
Deductions for tax losses of earlier income years
SECTION 36-10
How to calculate a tax loss for an income year
36-10(1)
Add up the amounts you can deduct for an income year (except * tax losses for earlier income years). 36-10(2)
Subtract your total assessable income. 36-10(3)
If you * derived * exempt income, also subtract your * net exempt income (worked out under section 36-20 ). 36-10(4)
Any amount remaining is your tax loss for the income year, which is called a loss year .
For subsection (3), if you have *exempt income under section 51-100 (about shipping), disregard 90% of so much of your *net exempt income as directly relates to that exempt income.
Add up the amounts you can deduct for an income year (except * tax losses for earlier income years). 36-10(2)
Subtract your total assessable income. 36-10(3)
If you * derived * exempt income, also subtract your * net exempt income (worked out under section 36-20 ). 36-10(4)
Any amount remaining is your tax loss for the income year, which is called a loss year .
Note 1:
Some deductions are limited so that they cannot contribute to a tax loss. See section 26-55 (Limit on certain deductions).
Note 2:
The meanings of tax loss and loss year are modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.
36-10(5)
For subsection (3), if you have *exempt income under section 51-100 (about shipping), disregard 90% of so much of your *net exempt income as directly relates to that exempt income.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.