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-D - Rules that supplement Subdivision 268-C if the trust is in partnership  

SECTION 268-75   HOW TO CALCULATE THE TRUST ' S SHARE OF A PARTNERSHIP ' S NOTIONAL LOSS OR NOTIONAL NET INCOME FOR A PERIOD IF BOTH ENTITIES HAVE THE SAME INCOME YEAR  

268-75(1)  

This section applies if at any time during a period the trust is a partner in a partnership that has an income year that begins and ends when the trust ' s income year begins and ends.

268-75(2)  
The partnership ' s notional loss or notional net income for the period is worked out in the same way as the notional loss or notional net income of a trust.

268-75(3)  
The trust ' s share is calculated by dividing:

(a) the trust ' s interest in the partnership ' s net income or partnership loss of the income year;

by:

(b) the amount of that net income or partnership loss;

and expressing the result as a percentage.

268-75(4)  
However, if the partnership had neither a net income nor a partnership loss, the trust ' s share is a percentage that is fair and reasonable having regard to the extent of the trust ' s interest in the partnership.