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 268-45   HOW TO CALCULATE THE TRUST ' S NET INCOME FOR THE INCOME YEAR  

268-45(1)  
The trust ' s net income for the income year is worked out as follows.

268-45(2)  
Add up the notional net incomes (if any) worked out under section 268-30 or 268-70.

Note:

A notional loss for a period is not taken into account, but counts towards the trust ' s tax loss for the income year.

268-45(3)  
Add the full year amounts referred to in subsection 268-40 (7) (if any).

268-45(4)  
Subtract 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;

unless they exceed the total of the notional net incomes and the full year amounts. (If they equal or exceed that total, the trust does not have a net income for the income year.)

268-45(5)  
If an amount remains, subtract from it the trust ' s other full year deductions, in the order shown in subsection 268-35 (5), unless they exceed the amount remaining. (If they equal or exceed that amount, the trust does not have a net income for the income year.)

268-45(6)  
The amount (if any) remaining is the trust ' s net income for the income year.


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