INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 268 - How to work out a trust ' s net income and tax loss for the income year  

Subdivision 268-C - Other steps in working out the net income and tax loss  

SECTION 268-40   HOW TO ATTRIBUTE ASSESSABLE INCOME TO PERIODS  

268-40(1)  
The trust ' s assessable income for the income year is attributed to periods in the income year as follows.

268-40(2)  
The following amounts are attributed to periods so far as they are reasonably attributable to those periods:


(a) amounts included in the trust ' s assessable income under section 97 (Beneficiary of a trust estate not under a legal disability); or


(b) amounts included in the trust ' s assessable income under section 98A (Non-resident beneficiaries assessable in respect of certain income).

268-40(3)  
The following items of assessable income are attributed to each period in proportion to the length of the period:


(a) insurance recoveries for loss of livestock or trees;

See section 385-130 of the Income Tax Assessment Act 1997 .


(b) amounts included in assessable income as a result of elections relating to the forced disposal of livestock;

See Subdivision 385-E and section 385-160 of the Income Tax Assessment Act 1997 .


(c) recoupment of mains electricity connection expenditure.

See item 1.25 in section 20-30 , which lists deductions for which recoupments are assessable under Subdivision 20-A , of the Income Tax Assessment Act 1997 .

268-40(4)  


An amount included in the trust ' s assessable income under section 385-185 (Election to defer including profit on second wool clip) of the Income Tax Assessment Act 1997 is attributed to the period when the wool would ordinarily have been shorn.

268-40(5)  
An amount included in the trust ' s assessable income that is a dividend under:


(a) section 65 (Payments to associated persons); or


(b) (Repealed by No 79 of 2007 )


(c) section 109 (Excessive payments to shareholders and associates); or


(d) Division 7A of Part III (Distributions to entities connected with a private company);

is attributed to the period when the amount was paid or credited, whichever occurred first.

268-40(6)  
All other items of assessable income (except full year amounts) are attributed to periods as if each period were an income year.

268-40(7)  
Full year amounts are amounts referred to in paragraphs (2)(a) and (b), so far as they are not reasonably attributable to a period. They are brought in at a later stage of the process of calculating the trust ' s net income for the income year.


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