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
The trust ' s deductions for the income year are attributed to periods in the income year as follows. 268-35(2)
The following deductions are attributed to each period in proportion to the length of the period:
(a) (Repealed by No 101 of 2006 )
(aa) deductions for the decline in value of a depreciating asset;
(b) (Repealed by No 101 of 2006 )
(c) deductions for expenditure, deductions for which are spread over 2 or more years, but not full year deductions (see subsection (5));
(d) deductions for expenditure of capital monies in connection with an Australian film.
All other deductions (except full year deductions) are attributed to periods as if each period were an income year. 268-35(4)
Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the trust ' s net income for the income year. 268-35(5)
These are full year deductions :
(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 , or for losses on debt/equity swaps under section 63E ;
(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) deductions allowable under Division 30 of the Income Tax Assessment Act 1997 ;
(e) deductions for payments of pensions, gratuities or retiring allowances under section 25-50 of the Income Tax Assessment Act 1997 ;
(f) deductions for tax losses of earlier income years;
(g) - (h) (Omitted by No 169 of 1999)
(i) (Repealed by No 101 of 2006 )
(j) deductions for farm management deposits.
However, a deduction for the balance of capital expenditure is not a full year deduction if the deduction results from the disposal, loss, lapse, termination of use or destruction of the property.
Subdivision 268-C
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Other steps in working out the net income and tax loss
SECTION 268-35
HOW TO ATTRIBUTE DEDUCTIONS TO PERIODS
268-35(1)
The trust ' s deductions for the income year are attributed to periods in the income year as follows. 268-35(2)
The following deductions are attributed to each period in proportion to the length of the period:
(a) (Repealed by No 101 of 2006 )
(aa) deductions for the decline in value of a depreciating asset;
See Division 40 of the Income Tax Assessment Act 1997 .
(b) (Repealed by No 101 of 2006 )
(c) deductions for expenditure, deductions for which are spread over 2 or more years, but not full year deductions (see subsection (5));
(d) deductions for expenditure of capital monies in connection with an Australian film.
See former section 124ZAFA .
268-35(3)
All other deductions (except full year deductions) are attributed to periods as if each period were an income year. 268-35(4)
Full year deductions are not attributed to any of the periods. They are brought in at a later stage of the process of calculating the trust ' s net income for the income year. 268-35(5)
These are full year deductions :
(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 , or for losses on debt/equity swaps under section 63E ;
(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) deductions allowable under Division 30 of the Income Tax Assessment Act 1997 ;
(e) deductions for payments of pensions, gratuities or retiring allowances under section 25-50 of the Income Tax Assessment Act 1997 ;
(f) deductions for tax losses of earlier income years;
See Division 36 of the Income Tax Assessment Act 1997 .
(g) - (h) (Omitted by No 169 of 1999)
(i) (Repealed by No 101 of 2006 )
(j) deductions for farm management deposits.
Note:
See Division 393 of the Income Tax Assessment Act 1997 .
268-35(6)
However, a deduction for the balance of capital expenditure is not a full year deduction if the deduction results from the disposal, loss, lapse, termination of use or destruction of the property.
See Subdivision 40-D of the Income Tax Assessment Act 1997 .
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