Income Tax Assessment Act 1936
SCHEDULE 2F
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TRUST LOSSES AND OTHER DEDUCTIONS
Division 268
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How to work out a trust
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s net income and tax loss for the income year
For the purposes of Division 36 (Tax losses of earlier income years) of the Income Tax Assessment Act 1997 , instead of working out the trust ' s tax loss for the year under section 36-10 of that Act, it is worked out as follows. 268-60(2)
Total the notional losses. 268-60(3)
Add the amount (if any) by which the trust ' s full year deductions of these kinds:
(a) deductions for bad debts under section 8-1 (about general deductions) of the Income Tax Assessment Act 1997 ;
(b) deductions for bad debts under section 25-35 (about bad debts) of the Income Tax Assessment Act 1997 ;
(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
(d) the notional net incomes (if any); and
(e) the full year amounts referred to in section 268-40 (if any). 268-60(4)
If the trust derived exempt income, subtract its net exempt income as defined in section 36-20 of the Income Tax Assessment Act 1997 . 268-60(5)
Any amount remaining is the trust ' s tax loss for the income year.
Subdivision 268-C
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Other steps in working out the net income and tax loss
SECTION 268-60
HOW TO WORK OUT THE TRUST
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S SECTION 36-10 TAX LOSS FOR THE INCOME YEAR
268-60(1)
For the purposes of Division 36 (Tax losses of earlier income years) of the Income Tax Assessment Act 1997 , instead of working out the trust ' s tax loss for the year under section 36-10 of that Act, it is worked out as follows. 268-60(2)
Total the notional losses. 268-60(3)
Add the amount (if any) by which the trust ' s full year deductions of these kinds:
(a) deductions for bad debts under section 8-1 (about general deductions) of the Income Tax Assessment Act 1997 ;
(b) deductions for bad debts under section 25-35 (about bad debts) of the Income Tax Assessment Act 1997 ;
(c) deductions, so far as they are allowable under Division 8 (which is about deductions) of the Income Tax Assessment Act 1997 because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;
exceed the total of:
(d) the notional net incomes (if any); and
To work out the notional net income: see sections 268-30 and 268-70 .
(e) the full year amounts referred to in section 268-40 (if any). 268-60(4)
If the trust derived exempt income, subtract its net exempt income as defined in section 36-20 of the Income Tax Assessment Act 1997 . 268-60(5)
Any amount remaining is the trust ' s tax loss for the income year.
To find out how much of the tax loss can be deducted in later income years, see Division 266 or 267 .
To find out how to deduct it, see section 36-15 or 36-17 of the Income Tax Assessment Act 1997 .
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