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
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.
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;
(b) the amount of that net income or partnership loss;
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.
Subdivision 268-D
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Rules that supplement Subdivision 268-C if the trust is in partnership
SECTION 268-75
HOW TO CALCULATE THE TRUST
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S SHARE OF A PARTNERSHIP
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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.
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