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 268-30   CALCULATE THE NOTIONAL LOSS OR NET INCOME FOR EACH PERIOD  

268-30(1)  
A notional loss or notional net income of the trust must be worked out for each period into which the income year has been divided in accordance with Subdivision 268-B .

268-30(2)  
The trust has a notional loss for a period if the deductions attributed to the period under section 268-35 exceed the assessable income attributed to the period under section 268-40 . The notional loss is the amount of the excess.

For a period during which the trust was in partnership, the notional loss is worked out under Subdivision 268-D .

268-30(3)  
On the other hand, if that assessable income exceeds those deductions, the trust has a notional net income for the period, equal to the excess.

For a period during which the trust was in partnership, the notional net income is worked out under Subdivision 268-D .

268-30(4)  
If the trust has a notional loss for none of the periods in the income year, this Subdivision has no further application, and the trust ' s net income for the income year is calculated in the usual way.

The usual way of working out net income is set out in section 95.


 

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