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 268-85   TRUST ' S FULL YEAR DEDUCTIONS INCLUDE A SHARE OF PARTNERSHIP ' S FULL YEAR DEDUCTIONS  

268-85(1)    
This section applies if at any time during the income year the trust is a partner in a partnership that has one or more full year deductions for the income year of the partnership that corresponds to the income year of the trust.

268-85(2)    
The partnership ' s full year deductions are treated as full year deductions of the trust, but only to the extent of the trust ' s share.

268-85(3)    
If the partnership ' s income year is the same as the trust ' s, 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.

268-85(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.

268-85(5)    

If the partnership ' s income year does not begin and end at the same time as the trust ' s income year, the trust ' s share is a percentage that is fair and reasonable having regard to all relevant circumstances.