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 268-70   HOW TO CALCULATE THE TRUST ' S NOTIONAL LOSS OR NET INCOME FOR A PERIOD WHEN THE TRUST WAS A PARTNER  

268-70(1)    
This section applies if at any time during a period the trust was a partner in one or more partnerships.

268-70(2)    
The trust has a notional loss for the period if the total (the loss total ) of:

(a) the deductions attributed to the period under section 268-35 ; and

(b) the trust ' s share of each notional loss (if any) of a partnership for the period;

exceeds the total (the income total ) of:

(c) the assessable income attributed to the period under section 268-40 ; and

(d) the trust ' s share of each notional net income (if any) of a partnership for the period.

The notional loss is the amount of the excess.

Note:

A notional loss is taken into account in working out the trust ' s tax loss under section 268-60 .

268-70(3)    
On the other hand, if the income total exceeds the loss total, the trust has a notional net income for the period, equal to the excess.

Note:

A notional net income is taken into account in working out the trust ' s net income under section 268-45 .

268-70(4)    
If the trust has a notional net income for all periods in the income year, this Subdivision has no further application, and the trust ' s net income for the income year is worked out in the usual way.

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