INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

SECTION 268-50   HOW TO CALCULATE THE TRUST'S SECTION 79E LOSS FOR THE INCOME YEAR  

268-50(1)    
For the purposes of section 79E (General domestic losses of post-1989 years of income), instead of working out the trust's loss for the year under subsection (1) of that section, it is worked out as follows.

268-50(2)    
Total the notional losses worked out under section 268-30 or 268-70 .

268-50(3)    
Add to the total in subsection (2) the amount (if any) by which the trust's full year deductions of these kinds:

(a) deductions for bad debts under section 51 (Losses and outgoings);

(b) deductions for bad debts under section 63 (Bad debts);

(c) deductions, so far as they are allowable under section 51 of this Act because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III applies to the trust in relation to the income year;

exceed the total of:

(d) the notional net incomes (if any); and

To work out the notional net income: see sections 268-30 and 268-70 .

(e) the full year amounts referred to in section 268-40 (if any).

268-50(4)    
If the trust derived exempt income, subtract its net exempt income as defined in subsection 79E(12) .

268-50(5)    
Any amount remaining is the trust's loss for the income year.

To find out how much of the loss can be deducted in later income years, see Division 266 or 267 .

To find out how to deduct it, see section 79E .