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 at a different time from when the trust ' s income year begins and ends.
So much of the partnership ' s net income or partnership loss of an income year as was derived during the period is a notional net income or notional loss of the partnership for the period. (For the purposes of this subsection, the partnership ' s net income or partnership loss is calculated without taking account of the partnership ' s full year deductions for that income year.)
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;
Subdivision 268-D
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Rules that supplement Subdivision 268-C if the trust is in partnership
SECTION 268-80
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 THE ENTITIES HAVE DIFFERENT INCOME YEARS
268-80(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 at a different time from when the trust ' s income year begins and ends.
268-80(2)
So much of the partnership ' s net income or partnership loss of an income year as was derived during the period is a notional net income or notional loss of the partnership for the period. (For the purposes of this subsection, the partnership ' s net income or partnership loss is calculated without taking account of the partnership ' s full year deductions for that income year.)
Note:
The partnership ' s full year deductions are dealt with in section 268-85 .
268-80(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.
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