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 268-60   HOW TO WORK OUT THE TRUST ' 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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